Value of fixed assets as per indian gaap for capitalisation

Please guide, is it compulsory to capitalise each item purchased value more than INR 5000,which has long usable life of 2-4 or more year Or i can expense out?

 

 

Replies (3)

Dear Gopal,

As pe the companies act you have to expenses out / or 100% depreciate any addition below 5000.

In your case if you want to expenses out items having cost more than 5000 you can, for that you have to make a policy and it required disclosure .

Thanks Puru for your clarification.

Is there any detailed process or guidelines written somewhere? So that can present as document to my team.

 

Regards,

Gopal

 

Yes , You can refer schedule xiv as per companies Act,1956

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