Ordinary repairs and maintenance of operational assets should be capitalized and depreciated over the remaining useful life of the related asset.

Question

Quizplus · Accepted Answer

Ordinary repairs and maintenance of operational assets are expenses that should be recognized in the current period and not capitalized. Only material replacements or upgrades that extend the useful life or enhance the asset's capacity would be capitalized and depreciated over their remaining useful life.

Ordinary Repairs and Maintenance of Operational Assets Should Be Capitalized