Question

TechCo upgraded its machinery in Year 3 of its 5-year life, extending useful life by 3 years. WDV before upgrade is ₹60 lakh; upgrade costs ₹15 lakh. Disclosures under Ind AS 16 require what accounting treatment?

A Expense ₹15 lakh immediately
B Add ₹15 lakh to WDV and amortize over revised life
C Add ₹15 lakh but continue over original remaining life
D Treat ₹15 lakh as maintenance
E Capitalize ₹15 lakh and leave original life unchanged
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