Repairs etc, not to be construed as Capital Improvements. Act, Section 28
I am going around in circles trying to understand this phrase. I know we have Mtnc in our Reserve Fund. We have improvements/ upgrades and some major road repairs in our RF Report, so are these not capital improvements because the are in our Fund Report. I cannot understand the following statement which seems to me contradictory. Can someone clarify this section. I cannot get my head wrapped around this for some reason.
“For the purpose of this Part Sec38 of the Act, a repair to or replacement of depreciating property that is carried out by the corporation is not to be construed as a capital improvement if that repair or improvement is a matter that was included in the current reserve fund report that was prepared and submitted to the corporation.
The repair or replacement is in the RF along with all the other capital assets. Then we are not to construe this as a cap improvement if it is in the fund. OM goodness I am so confused. LOL. Can someone help me out of the swamp?
Log in to reply.