dear Sir Mike
What is overhaul expense? and is it capitalised?
Ask the Tutor ACCA FR
overhaul
Hi
It's repair and renewals! To overhaul an engine is to take it out of its normal environment,. strip it down, replace anything that needs replacing and then re-commissioning it.
If it improves the earning capacity of the asset, then it's capitalised. If it merely extends its useful economic life, then it's expensed.
Sign in to reply to this topic.
