XYZ Ltd was incorporated in Apr 2011. In October 2013, the factory was shifted from West Bengal to Andhra Pradesh. In this regard, relocation expenses were incurred and the same were capitalised into fixed assets. Is the treatment accorded as per AS 10?
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Fixed assets
Replies (4)
No,it should not be capitalised.
Only that expenses which brings assests to its usable position can only be capitalised as per AS 10
or which increases its productive life
if any major part gots damage and without which product cant be produced then replacement cost of that part should be capitalised but not routine parts which came under the defination of repairings and maintainence
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