Capital or revenue expenditure

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student
23 Points Posted on 14 April 2020

are legal expenses to defend a suit claiming that firm's factory site belongs to plantiff capital or revenue expenditure? 

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On 14 April 2020 at 03:53 Report
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This discussion explores whether legal expenses incurred to defend a factory site's ownership are capital or revenue expenditure. While one perspective argues it's revenue expenditure as it maintains ownership of existing assets, another suggests it could be capital if related to acquiring ownership. The differing views highlight the nuances in accounting for such costs.

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GST Practitioner & Accounts
15146 Points Posted on 14 April 2020

In my opinion  its  " Revenue  Expenditure  "  ,  please confirm with others also . 

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On 14 April 2020 at 09:40
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student
23 Points Posted on 15 April 2020

i referred to two different books and one claims it's a capital expenditure while other claims it's revenue expenditure. why's that so

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On 15 April 2020 at 01:34
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Chartered Accountant
4524 Points Posted on 16 April 2020
Revenue expenditure as it is incurred to maintain the ownership of capital assets. If same would incurred to acquire the ownership of capital assets in that case it would be capital expenditure.
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On 16 April 2020 at 14:18

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