repairs and maintenance expense definition

The costs incurred to bring an asset back to an earlier condition or to keep the asset operating at its present condition (as opposed to improving the asset). For example, if a company truck is damaged, the cost to repair the damage is immediately debited to repairs and maintenance expense. Routine maintenance such as engine tune-ups, oil changes, radiator flushing, etc. is also debited to repairs and maintenance expense. (If an expenditure is made to improve the truck, such as adding a hydraulic lift to the truck or if an expenditure is a major repair that extends an asset’s useful life, the amount is not expensed immediately; rather, the amount is recorded as an asset and is then depreciated over the truck’s remaining useful life.)