Clarity on capitalisation

Dear Jayanta,

Expenses incurred on religious ceremony and sweet distribution should not be capitalised instead the same should be charged to Revenue. As the above expenses does neither create any value addition to the asset nor it increases the efficiency or live of asset. 

yes agree with nishant sir

It should not be capitalized at all. The same should be charge at Revenue.

CA Chirag

As per AS 10, Cost of fixed assets include its purchase price and any attributable cost of bringing the assets to working condition for its inteded use. In case the religious activity expenditure are not incidental to bring the asset the to its intended use than it will be charged to P&L.