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Tarring of road

AS 911 views 1 replies

Hi All

 

My Question today is

 

Is tarring of Road a Capital expense, if so, referring to any clause in accounting standard, can anybody explain why the expense should be capitalised than take as repairs and maintance expense.

 

 

Thank you

Replies (1)
Simple tarring of road would amount to repairs and mainenance only. But along with tarring, if some other structure improving activities like laying through blue metal stones etc are doen ,increasing the life of the asset then the same can be considered for capitalization under AS-10


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