We have sent one defect (earlier imported) item to foreign supplier for repair under GR Waiver. Repair cost runs in to Euro 1. 70 Lakhs upwards- definitely giving this a new life. Whether this is expensed to P & L Account or be capitalised? AS 10 -ICAI Guideline, ((IAS-16--directly attributable costs--here must be additional probable future economic benefit associated with this subsequent expenditure that will flow to the entity.) Kindly guide,
A 'Capital Expenditure' is an acquisition or upgrade that permanently increases the value of an asset. ... In contrast, any expenditure that serves to restore or maintain, rather than increase, the value of an asset cannot be CapEx — it's simply repair or maintenance.
As-10 clearly mentions that the expenditures incurred on an asset can be capitalised if they result in i) increase in useful life. ii) increase in efficiency(quality of output) of asset. iii) savings/reduce costs for more than one accounting period. iv) increase it production capacity from its original capacity(capacity when it is purchased).
Passing on extra weight can tire the muscles and put weight on the bones. An assessment in the Journal of Medicinal Food saw that people who were fat who took an oral improvement of cleansed shilajit responded liked to rehearse over the people who didn't. Pure Shilajit Masters saw that the shilajit seemed to start characteristics in the body that helped the skeletal muscles quickly change in accordance with the new exercise. This could mean less exhaustion yet rather greater quality after some time.