Quick question that's in dispute: Cost of spare parts used for smooth productivity of a machinery is capitalizable? It will come under Consumables & Equipments or under Plant & Machinery?
Menu
Cost of spare parts-accounting treatment
Replies (6)
If it increses the capacity or productivity of the machinery, you can capitalise the same
If it increses the capacity or productivity of the machinery, you can capitalise the same
any spares being purchased for wear and tear of machineries, has to be booked as revenue expenditure. The capitalisation part ends for any machinery, till it starts production, say , 90 days from the date of installation.
If its substantial and increasing the productivity of the machine...captlze it...or else debit to.repairs and maintenance
It is for d assets and it increases the efficiency of d assets so it must be capitalized. .
Spare parts, if meets the recognition criteria as per Ind AS 16, can be capitalised otherwise will be treated as inventories.
Recent Topics :
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
- FY 2025-26 ITC CLAIM DUE DATE
- 96084000 and 48202000 HSN code ka Tax Rate kya hai
- Clarifications for intra day transactions
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
Related Topics :
CAclubindia
