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Repairs and maintenance v/s fixed asset
There is only sleek difference in identifying a bil as FA or R&M. Please clarify the differences between the two and how to identify it?
Replies (2)
An Expense Shall only be capitalised if it :
1.Increases production capacity or
2.Reduces cost of Production.
All the other expense should be charged as expense.
if repair & maintenence increase capacity of assest above than orignal capacity, it will be capitalised in fixed asset
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