Renovation and Repair/Maintenance expenses: which are which?


Joined
Aug 5, 2011
Messages
1
Reaction score
0
Hi all.

In accounting, what is the difference between ‘Renovation’ (fixed assets) and ‘Repair and maintenance’ (Profit and Loss expense)?

What kind of expenditure can you classed under each of these? How do I know what I can capitalize (renovation) and what I can write off in the current year (R&M)?

I heard that Renovation is expenditure that can add value to a business property and/or prolong the property's life.

If the expenditure is for a building that is rented and not owned by a business, then it is NOT adding value to the business since the property is not owned by the company, right?
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top