أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
By removing the older tank retailer can plant latest high capacity holder tank which can be fited within the limited space available at gas station.
Yes, it can be considered as a capital improvement but also depends on various other factors such as geograhical location, competitors, availability of space, population, etc.
actually this is a capital expense in nature this is treated as revenue expenditure bcoz its improve the revenue expense
DO you mean removing gas tanks which is already plant in a gas station?YES can be consider it as need of more capital improvement cause as far as i know as a capitalise of gas station you need to have more capital to invest and can be choosen to be the highest retailler of all nation wide,,,the more you have tanks of gas the more higher retailler you are....and in order for you to be the best GOLD retailer you need this CAPITAL to improve not only for you to earn more but in order for you to win the compettition as one of a success retailler.
in fact the more you have station the more you are competitive to others therefore; it is better to have more gas tanks than removing in your sites
thank you
Its capitalzation depends on the purpose, it is removed for what.
Yes
In my opinion, once you capitalise and commission the material, any further expenses on improvement to be debited to normal expenditure and not to Capital expenditure.
The removal of tanks will depend if should be a capital improvement on not.
This will be covered in IAS16 which suggest some criteria before you can clasify such thing as Capital Improvement.
a. Will it increase the Capacity
b. Will it extend the life of any related asset
c. Will it improve efficiency
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟