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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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