i. Travelling expenses incurred directors for acquisition of plant & machinery.
Travelling expenses incurred directors for acquisition of plant & machinery which is directly attributable costs of bringing the assets to working condition for its intended use is part of cost of that plant & machinery.
ii. Non-technical staff’s salary during the period of installation of plant & machinery.
Non-technical staff’s salary during the installation of plant & machinery should be capitalized as part of construction cost if it is indirectly related to construction or incidental thereto. If it is not related, then such expenditures should be treated as deferred revenue expenditure to be written off within a reasonable period offer the commencement of production.
iii. Major repairs to assets.
Cost of major repairs to assets should be added to its cost only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance.