Capitalization of fire extinguishers

You have to capitalise all the 5 Fire Extinguiser...Irrespective of their usage.

agreee with above

One small clarification:

Put to Use - what I meant exactly is Out of 5 purchased, 3 was kept in the factory premises and 2 was kept in stores. 

No issue at all.

Thank you very much to both of you.....

all 5. even if it is kept in store. its passive use of assets.

Hi Friends,

In this case, when we enquired in depth and verified the remaining Fire extinguishers which were kept in the stores, we came to know that these 2 Fire extinguishers were not filled when they purchased it. Once the due date arrives for the refilling of already placed fire extinguishers in factory, the vendor will come and refill the fire extinguishers along with these 2 Fire Extinguishers also. 

So it's not kind of passive usage of assets also, since the fire extinguishers are not filled.

I think, they have to capitalize these remaining 2 Fire extinguishers once they are filled.

What do you guys think?

Thanks & Regards,

Madhavan.

if they are not filled, then it can not be used in case of need. so no depreciation will be allowed. but capitalise to karna hi padega. you have to show it in assets.

The remaining 2 Fire extinguisher's are shown in CWIP in their books. Is this correct? Or they have to capitalize it?

its not actually capital work in progress. just show it in assets, rate of depreciation will be 0%

Dear Experts,

Is it eligible to debit the expenses  made for "Refilling of fire extinguishers" to P&L A/C ?

awaiting for your valuable suggestion.

regards, 

Querist