If a plant and machinery is repaired

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1359 Points Posted on 06 June 2022
if a plant and machinery is repaired after being fully distroyed (means if firm doesn't repair it . it will no longer to be in use ) so does this repairing cost is capitalized ?
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On 06 June 2022 at 15:17 Report
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When plant and machinery are completely destroyed and require significant repairs to be usable again, the cost of these repairs is generally capitalised. This is because the expenditure is essential for salvaging the asset and restoring it to operational status. Such costs are often amortised and capitalised as part of the asset's value.

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Chartered Accountant
86505 Points Posted on 06 June 2022
Same is capitalised
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On 06 June 2022 at 22:20
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Profession Business
28246 Points Posted on 07 June 2022
The repairing cost is being used to salvage the asset . Hence it has to be capitalized. Many a times such cost is being amortized and capitalized.
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On 07 June 2022 at 06:11

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