Chathuri, I.P.D.Thilakarathne, P.M.C.2016-03-172016-03-172016Chathuri, I.P.D. & Thilakarathne, P.M.C. 2016. Does it Worth Capitalizing?. Case Studies in Accounting “Bridging the Gap”, 03: pp. 55-56. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.http://repository.kln.ac.lk/handle/123456789/12192ABC Active (Pvt) LTD is a separate legal entity under Active cluster of ABC (Pvt) LTD. ABC (Pvt) LTD is a $1.2 bn conglomerate and is positioned as one of the world’s most recognized Design–to-Delivery Solution Providers in the realm of Apparel and Textile Manufacturing. Being one of the largest production plants in Sri Lanka, ABC Active (Pvt) LTD owns 03 plants of production comprised with Knitting, Dyeing & Sewing production floors. ABC Active involves high technical knitting machines for their vibrant production process. Discrepancy identified here is that management recognizes total expense in the quotation as cost of a knitting machine although the payment of the asset is based on a deferred scheme.enArticle