Accounting of Electrical Fittings

[Surya Moorthy]

Good evening everybody,

          I need one clarification for accounting of electical fittings. If I have purchased one Machinery then how can i account the electrical fittings like cable, switches, A/C, Cabin related to that machine. Whether accounted with the machine(value of machine will be increased) or separately grouped under Plant & Machinery head?

                 Please solve my doubt.

AI Summary

Capitalization of electrical fittings: integral cables and switches added to plant while A/C and cabins are classified separately.
Cables and switches integral to a machine are typically capitalized as Plant & Machinery; air conditioning units are usually classified as Furniture; cabins are accounted as Building. Alternatively, items that materially enhance a machine's efficiency may be capitalized with the machine, while those of routine service may be expensed, so treatment depends on integration, permanence and enhancement of productive capacity.