Electrification expenses at the time factory construction is capitalized to cost of or expensed off

what is treatment for expenses for electrification expenses like cable, metal clad etc.  at the time of factory construction. Is it capitalized to cost of factory building  or expensed off to P/L
 

Replies (4)
Quick Summary
This discussion explores the accounting treatment for electrification expenses incurred during factory construction, such as cabling and metal cladding. Participants debate whether these costs should be capitalised as part of the factory building's cost or expensed directly to the profit and loss account. The consensus leans towards capitalising these expenses as they are integral to the factory's construction and site preparation.

Electrification charges are expensed off to P/L

Yes it is capitalised as it falls under costs of site preparation and electricity charges will be expensed.

It will be capitalized as such expense is part of the construction of factory.

I’m getting April notifications now :) 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details