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Tiles purchased for school
When tiles are purchased for school construction ...is this expenditure to be classified as EXPENDITURE or consider it as an asset?
Replies (2)
Quick Summary
If tiles are purchased for a building which is under construction, then the same is to be included with the cost of building and capitalized. (capital expenditure)
if it's done to refurbish or to renovate an existing building the same can be treated as expense (revenue expenditure)
if it's done to refurbish or to renovate an existing building the same can be treated as expense (revenue expenditure)
If it is for new building then capitalize it (asset). and if purchased for existing building then expenditure if after repairs the life of building is not increased.
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