Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

When can a repair of equipment/machine be classified as CAPEX?

user-image
Question added by Bilal Khan , Senior Tax Accountant , Finvesco Limited
Date Posted: 2015/08/09
Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

if it increases the operating efficiency and cost of repair significant amount of economic cost

Abdur Rahim
by Abdur Rahim , Head Accountant , MAPCo. LLC

Expense on repair of equipment/machine can be Capitalized only if :

It increase the production capacity of machine

it increases the Market Value of machine or

Increases the estimated life of machine. 

More Questions Like This