Can you defer repairs and maintenance costs that are not part of a major overhaul from one year to another. These are not capex repairs that improve or extend the life of the asset which is part of a fleet of vehicles. Ownership is insisting you can take the cost out of 2024 and reverse it on day 1 of 2025. Everything I am reading under asc360 says it needs to be expensed in the period incurred and it can not be deferred. To be clear this is not part of major overhaul that will be depreciated or amortized.
USA Accounting for repairs and preventative maintenance
- Thread starter KimLD
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DrStrangeLove
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Your reading of ASC 360 is correct. Regular, routine maintenance and repairs are expensed as incurred. No deferrals.