Building Demolition - capital expenditure?

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1359 Points Posted on 09 October 2022
A building is demolish to build bigger building and firm have loss of 50 lac on demolishing the building does this demolish ( scrapping) loss is capitalised ???
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On 09 October 2022 at 18:39 Report
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Quick Summary
This discussion explores whether the cost of demolishing a building to construct a new one should be treated as a capital expenditure or an immediate expense. It touches upon the accounting implications, including potential capitalisation and amortisation, as well as the recording of demolition liabilities.

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Profession Business
28246 Points Posted on 10 October 2022
Building demolition is the only activity.
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On 10 October 2022 at 07:19
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1359 Points Posted on 10 October 2022
What ??
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On 10 October 2022 at 15:01
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Finance
4592 Points Posted on 11 October 2022

You've already capitalised and amortised it over these years. But you'll have a demolition liability provision recorded. 

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On 11 October 2022 at 21:41

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