Construction Site Assets

Dear Sir,

I am working in construction company, our project start in Gujarat. In that project we construct  shed ( Some Part is Removable it use in upcoming project also) for self use then that cost book in fixed asset building or charged as expenses.

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Quick Summary
This discussion explores the accounting treatment for construction site assets, specifically temporary sheds intended for reuse in future projects. The core question is whether the cost of such assets should be capitalised as a fixed asset or expensed. The aim is to clarify the reasoning behind classifying these assets.

It should be treated as assets

can you please explain the reason

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