Hi,
What are companies act latest provision for fixed asset Capitalisation threshold? Can a company choose to adopt a policy for capitalising assets with unit cost of INR 10000 or 15000 or more? What are applicable provisions of companies act and IND AS in this regard. Please guide.
Thanks
Rishi
Thanks. Currently we have same policy of capitalising item with unit cost of Rs 5000, and now we want to increase that threshold to Rs 10000 meaning everything less than Rs 10000 will be charged to p&l and if unit cost is more than Rs 10000 then it will be capitalised. Is this allowed under companies act? If yes, what are the required provisions under companies act and IND AS? Please advise.
@ Rishi I think Mr Sabyasachi said, 5000 assets are expensed. Company laws are applicable for indas as well.
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