Hi again
Replacement of alleyway door is capital or revenue expense?
In my opinion replacement with a similar type one will be revenue , replacement with a different and better in quality and durability may be capital and if there was none before, it will be capital.
M i right? Will really appreciate guidance.
Capital exp or revenue exp
Re: Capital exp or revenue exp
Hi, a replacement of an old item with a new one of the same quality etc. can also be treated as a capital expenditure provided that the previous item is derecognised – see IAS 16.13
-
- Posts: 39
- Joined: 14 Apr 2019, 04:54
Re: Capital exp or revenue exp
Loads of thanks. I mixed tax with IFRS.