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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Capitalising Expenditure
Decorating PPE which causes the company to increase it’s price and thus earning revenue. Would that be capitalised?
Hi,
No, decorating is restoring the PPE and is not enhancing the asset. If there were significant changes made structurally then it might be capitalised but decorating is not likely to increase the price of an asset or the ability to earn more revenue as it is just keeping it at the market rate.
Thanks
