Repair and Maintenance Expenditures Policy
Recording Repair and Maintenance Costs in Accordance With Accounting Standards
Organizations can use the guidelines included in this policy to review and approve their repair and maintenance expenditures.
In this sample, operating units are required to establish formally authorized expenditure limits regarding repair and maintenance expenditures. The authority to approve commitments and expenditures should be limited to transactions within the individual's normal scope. The controller at each operating unit is responsible for establishing procedures to review repair and maintenance transactions and to check approval authorizations, account distributions and compliance with procedural requirements. Operating units are prohibited from accruing a liability for planned maintenance costs before the maintenance is performed.