TREATMENT IN BOOKS

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Student
8 Points Posted on 29 October 2022

Whether amount spent on Weather Coating ( Heat Control) at a production unit has to be capitalized or should be treated as an expense?

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On 29 October 2022 at 10:34 Report
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This discussion explores whether the cost of heat control (weather coating) at a production unit should be capitalised or treated as an expense. If the coating is integral to the production process, it's considered a direct expense and should be capitalised according to accounting standards. The core principle is to differentiate between capital and revenue expenditure.

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SEO Sai Gr. Hosp.
212460 Points Posted on 29 October 2022

If coating is part of the production process, it will be direct expense.

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On 29 October 2022 at 14:28
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Finance
4592 Points Posted on 29 October 2022

Thats wjat standard says. Direct costs are capitalized. 

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On 29 October 2022 at 14:59
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Profession
28261 Points Posted on 30 October 2022
Follow basic principle of capital and revenue
1 Reply
On 30 October 2022 at 05:20

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