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Fixed asset limit
Request How to decide whether an asset (mobile 7,500) is to be treated as fixed asset or revenue expenses
Replies (2)
We are told any asset costing above Rs.5000 is to treate as fixed asset accordingly depreciation is to be caliculated.
The limit that is set out for Fixed asset below 5000 is to be charged to revenue is a very subjective in manner and could vary from company to company, A Mobile Costing Rs. 7500/- could be capitalized or could be Charged to revenue in the year in which it was purchased depending upon the policy followed by the company.
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