While auditing accounts of a company i came across the following situation:
A office space was taken on a rent of 6 years. This office was not fully constructed and thus subsequent to the acquisition of such space, costs were incurred on furnishing,electrical works,painting etc.
My question is whether these costs are to be expensed or are to be capitalized?
Expenditure incurred is around 30 lakhs while monthly rent is about 1.5 lakhs
CAclubindia
