Ask Your Mates Open Forum

Painting of Buildings

  • 1.  Painting of Buildings

    Posted 31 March 2019 19:43
    ​Hi all,

    Just wondering other peoples views on the painting of buildings, both interior and exterior. Do you capitalize these costs or are they considered to be more along the lines of maintenance and repairs? Any views and opinions would be greatly appreciated.

    Thanks in advance
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  • 2.  RE: Painting of Buildings

    Posted 01 April 2019 22:34
    Josh

    I always took the view that external was capitalised as it maintained or extended the useful life of the building, whilst internal was mainly aesthetic/cosmetic and treated it as routine maintenance.  Often the decision was based on value of the works.

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    Julia Smethurst
    julia.smethurst@sa.gov.au
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  • 3.  RE: Painting of Buildings

    Posted 02 April 2019 22:53

    I agree with Julia, but as mentioned it would depend on your capitalisation threshold and the level of componentisation - external structure and internal walls.

    For us it is over $5k, so you need to do a reasonable amount of painting to get over that threshold.

    Cheers 


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  • 4.  RE: Painting of Buildings

    Posted 02 April 2019 22:53
    Agree with Julia - you could tie yourself in knots agonising over the decision and having interesting philosophical discussions, but ultimately it may come down to what your internal cutoff is for capitalising works.

    Private sector you would be more likely to treat it as a repair and write it off as an expense against tax, different scenario though for LG.
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  • 5.  RE: Painting of Buildings

    Posted 03 April 2019 20:47
    Hi Joshua,

    If the project is solely painting, we consider it a maintenance expense, regardless of internal or external painting, as it is only allowing the asset to reach its useful life, not extending it. We have this identified in our AMP and LTFP, and we budget accordingly for the treatments when they are due.

    Mark.

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    MarkMatthewCity of Charles SturtManagement Accountant AMSmmatthew@charlessturt.sa.gov.au08 8408 1111
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  • 6.  RE: Painting of Buildings

    Posted 28 April 2019 19:25
    Josh,

    I would consider painting regardless of being of being internal or external as output (maintenance) related costs, with any repairs to the structure and fabric as capital costs.

    The outrigger to that is though unless you are undertaking a specialised treatment i.e. a heritage cementitious treatment / coating

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    RobertLadd | Manager Engineering Services
    Courts Services Victoria MelbourneVIC
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