banner_ad

Rework on Insulation of Steam Pipeline

A/c entries 446 views 2 replies

Dear Experts,
In our Company, we had capitalised steam pipeline for 50CR 7 years back. Now the Insulation of steam pipeline needs to be replaced which will cost around 6 Cr. Can I capitalise this cost of 6 Cr on the steam pipeline assets, considering that the same will last for next 4-5 years and also that without this Insulation work steam line may not perform.

Thanks & Regards

Replies (2)

Yes! Cost-7 years accumulated depreciation= NBV. From this, Its not impairment but Overhaul expenses must be deducted. Say NBV is now 30cr and that particular part is 1cr if it wasn't spoiled. You add a new part for 6cr then you must derecognize the old pipeline value and capitalize this value 30-1+6cr 

Thanks for the prompt revert


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
04 May 2026
Articleship

S.K Gairola & CO

New Delhi

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
06 May 2026
Account Assistant / Article Clerk

V.K. Ranjan & Co(Chartered Accountants)

New Delhi

B.Com

View Details