How do I record exterior cement work? Is it an asset or an expense?
If the cement work was done to repair or maintain existing cement work, then the expenditure should be recorded as an expense. Even if the cost is very large, repairs and maintenance must be expensed. The cost of repairs or maintenance cannot be recorded as an asset.
If the cement work is an addition or an improvement (more than repairing or maintaining existing cement work), the cost of the cement work is viewed as a new asset. If the amount is significant, you should record the expenditure as an asset and then depreciate the cost over the useful life. However, if the amount of the addition or the improvement is relatively small, the accounting concept of materiality allows you to expense the entire amount immediately.
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accounting principle
hi,
can u plz tell me that what do we do with credit and debit note amount, mean to say is that how do treat these two in accounting system based on oracle?
Book value of building is 1 million (stright line method to be depreciated in 20 years, original value was 10 million), it is depreciated for 18 year. now I am planning to repair the same building in order to use for another 5 years from now. Can you guide me how to reord the repair cost, calculation of depreciation for repair, and existing cost.