Purchase of Safety Equipment

Hi,

under which head does 'Purchase of Safety Equipment for Factory workers'  go. 

Is it Staff welfare expenses or Factory Expense ?

 

Thanks in Advance.

Replies (3)
Quick Summary
This discussion explores the correct accounting head for 'Purchase of Safety Equipment for Factory workers'. The consensus leans towards classifying it as Staff Welfare Expenses unless the equipment's lifespan exceeds one year, in which case it should be capitalised. Items like fire extinguishers might be capitalised due to their longevity, while consumables like bandages and medicines are treated as operating costs, albeit with some debate on their direct cost traceability.

Query  :  Safety Equipment for Factory workers, whether it is staff welfare expenses or Factory Expense
Ans :  If Safety Equipment life is more than 1 year, we should capitalized it otherwise it should transfer under Staff welfare Expenses

 

I guess there is no other way. If the safety equipment is needed it is capitalized. for example, fire extinguishers are refilled 5-6 years and form a part of PPE like CC cams if it is necessary. Band-Aids, medicines expire so they are (for the sake of a discussion) direct costs because they can be physically traced to the cost units aka factory 1, 2 etc. But are expensed like operating costs whilst they are direct costs as well. Lets see what's happens now. Well let me be frank, its an indirect cost, like medicines and first aid, but cost centers dont have direct or indirect cost allocations but ABC does. No abc doesnt as well, cause abc allocates indirect costs to direct costs on a cost unit. Sorry mi mistake.

Purchase of ppe

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details