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 :) 

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