Service
147 Points
Joined May 2008
I am not industry expert but what I understand from your query is that it’s a acquired aircraft maintenance tool which is being assessed for capitalization.
There exists a thin line of demarcation for charging the maintenance cost to P&L or capitalized as per Para 12 of AS 10. Based on guidance of AS 10.expenses need to be evaluate that whether such expenses will increase the future economic benefits from the assets as compared to previously assessed standard of performance and if the condition is satisfied than only such expenses can be capitalized.