For my knowledge, I would like to understand one point. When an office building is being constructed, if fixed furniture such as built-in cupboards (cabinets) and tables are installed in each room, should these costs be capitalized as part of the building construction cost, or should they be treated separately as furniture and fixtures?
The basic principle is the ‘function’ performed by the asset rather than being fixed to the building. Furniture mentioned by you perform the storage or workstation function and should be categorised as F&F and not as building costs. Building costs will be for construction of building and costs that help in making the building function like pluming, electric installation etc. However, dep rates @10% is same for F&F and non-residential buildings.
CS Sharad Bhargava