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Good day Mr Little. Can we capitalise the subsequent costs to increase the capacity of an item of PPE? What about the cost of replacement parts? Kind regards
Yes, so long as it improves / increases the production capacity. If it’s merely a replacement / repair then, no, it’s not available to be capitalised
OK?
I got that sir. How about the cost of replacing a component of an item of PPE?
Is that not what my previous post answered?
“If it’s merely a replacement / repair then, no, it’s not available to be capitalised”
Mr MikeLittle, even though I have already passed F7, I still enjoy reading your responses. I think this is reason why I passed F7! I would still use this principle on capitalising cost at F8 when I am testing assertions on full substantive testing.
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