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    Question

    As per Ind AS 16, subsequent expenditure on property,

    plant and equipment is capitalized when it:
    A Increases future economic benefits Correct Answer Incorrect Answer
    B Maintains existing capacity Correct Answer Incorrect Answer
    C Is for routine repairs Correct Answer Incorrect Answer
    D Is less than materiality threshold Correct Answer Incorrect Answer

    Solution

    Subsequent expenditure is capitalized only if it increases future economic benefits beyond originally assessed standards.

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