Repairs and Maintenance

Costs which are necessary to realize the originally projected benefits of an asset. Repairs and maintenance are expenses for normal maintenance and upkeep of capital assets that are necessary to keep the assets in their usual condition. These expenses are recurring in nature and do not extend the useful life of the asset. They would include such things as repairs to restore assets damaged by fire, flood or similar events, to the condition just prior to the event. Costs are charged to operations in the year they are incurred. The cost incurred in the maintenance of the service potential of a tangible capital asset (TCA) is a repair.

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