What counts as major maintenance?
An overhaul after four years, repainting a building, a major inspection with repairs: that is not an ordinary repair. How you account for it depends on what it is and which method you choose.
The short answer
Major maintenance is periodic work after a longer period of use that keeps the condition of an asset up to standard, such as overhaul, renovation and inspection. Replacing an important part is a component; frequent maintenance is expense. You account for major maintenance in the carrying amount or through a maintenance provision.
Updated 30 October 2026
Key facts
| Guideline | RJ 212.445 to 212.452; for micro and small RJk B2.122 and B2.135 |
| Law | art. 2:374(1) DCC: provision against expenditure in a following financial year, for an even distribution of charges |
| Change | From financial year 2026 you spread the effect of a changed estimate over the remaining build-up period (RJ 212.451 and 212.810) |
| Examples in the RJk | RJk B2.122 mentions overhaul, renovation and periodic inspection since the edition for financial years from 2026 |
Three kinds of expenditure on an asset
| Kind | Characteristic | Treatment |
|---|---|---|
| Frequent maintenance | Labour, consumables and small parts: ordinary repair and upkeep | Directly to expense (RJ 212.447) |
| Major maintenance | Periodic, after a longer period of use, keeps the current condition, no replacement of an important part | In the carrying amount or through a maintenance provision (RJ 212.445) |
| Replacement or improvement | An important part is replaced, or capacity and quality increase | Capitalise; write off the replaced part (RJ 212.206 and 212.418) |
The distinction requires judgement by management, on the basis of nature, size and frequency. Once chosen, you keep the classification (RJ 212.445).
| Does count as major maintenance | Does not count |
|---|---|
| Overhaul of drive and engines after a few years | Lubricating, adjusting, cleaning (frequent) |
| Periodic painting and facade repair of a building | Replacing worn small parts (frequent) |
| Major periodic inspection with repair work on a crane or lift | New roof or new installation: important component |
| Dry-docking of a ship, major inspection with repairs | Extra lane or greater capacity: investment |
| Renovation that restores the existing condition | Damage after fire or storm: incidental, not periodic maintenance |
A grey area remains: a renovation of an interior can be restoration or a new component. What is decisive is the nature and the proportion to the cost of the whole. Apply your choice equally to all similar assets (RJ 212.446).
Carrying amount or provision
- In the carrying amount. From purchase you treat the maintenance as a separate part of the cost and depreciate it until the next overhaul. At the overhaul you capitalise the actual costs and write off in one go what is still on the balance sheet from the previous overhaul (RJ 212.448 to 212.449).
- Through a maintenance provision. You charge the estimated amount spread over the period between two overhauls. If the actual costs differ, the difference goes through the profit and loss account (RJ 212.451 and 212.452). It is called a provision and not a reserve (RJk B2.122).
Provisions may also be recognised against expenditure to be made in a following financial year, insofar as the making of that expenditure originates partly before the end of the financial year and the provision serves to distribute charges evenly over a number of financial years.
What changed in 2026. If the estimate of the amount or the timing of the overhaul changes, you spread the effect over the remaining build-up period. A catch-up method that eliminates the difference in one go or in an accelerated way does not fit this. If you worked differently until now, that is a change in accounting policy that you may apply prospectively (RJ 212.810). More in RJ 212.
Case: a car wash
Glansstraat BV buys a car wash for € 600.000 on 1 January 2025, useful life twelve years, no residual value. The wash gantry with brush sets costs € 120.000 of that and lasts six years: an important part, so a component. Every four years an overhaul of the drive follows, estimated at € 60.000; the first at the beginning of 2029. Lubricating and adjusting are frequent maintenance and go directly to expense.
| Charge per year, 2025 | Carrying amount method | Provision method |
|---|---|---|
| Wash gantry: € 120.000 over 6 years | € 20.000 | € 20.000 |
| Overhaul component: € 60.000 over 4 years | € 15.000 | – |
| Rest of the installation | € 420.000 over 12 years: € 35.000 | € 480.000 over 12 years: € 40.000 |
| Addition to maintenance provision: € 60.000 over 4 years | – | € 15.000 |
| Total | € 70.000 | € 75.000 |
The difference of € 5.000 per year is € 60.000 divided by the twelve years the rest of the installation lasts. Under the provision method the installation is depreciated in full and the overhaul comes in addition as an addition to the provision; under the carrying amount method the overhaul is already in the cost, so the rest is € 60.000 lower.
At the beginning of 2027 the overhaul turns out to cost € 72.000, the timing remains the beginning of 2029. Under the provision method there is then € 30.000 (two years of € 15.000). Glansstraat spreads the shortfall of € 42.000 over the two remaining years: € 21.000 per year in 2027 and 2028. With a catch-up method for comparison it would have needed three quarters of € 72.000 at the end of 2027, € 54.000, so € 24.000 in 2027 and € 18.000 in 2028. The total is € 72.000 in both cases; only the spread differs. If the overhaul ultimately costs € 79.000 in 2029, the difference of € 7.000 goes through the profit and loss account (RJ 212.452).
What do you state per size class?
| Class | What applies |
|---|---|
| Micro entity (balance sheet total ≤ € 450.000, net turnover ≤ € 900.000, < 10 employees) | The same measurement rules (RJk M1.301); no notes. A provision is shown as a whole under provisions (art. 2:395a(4) DCC) |
| Small entity (balance sheet total ≤ € 7,5 million, net turnover ≤ € 15 million, < 50 employees) | State how major maintenance is accounted for and the depreciation methods (RJk B2.131). The tax rules for a maintenance provision differ from the RJ: anyone who follows them applies all tax-based policies together (art. 2:396(6) DCC) |
| Medium-sized entity (balance sheet total ≤ € 25 million, net turnover ≤ € 50 million, < 250 employees) | Method of accounting in the notes and the movement in the provision (RJ 212.701) |
| Large entity (balance sheet total > € 25 million, net turnover > € 50 million, ≥ 250 employees) | Same, in full; a provision is shown under other provisions (RJ 252) |
For financial year 2025 the 2024 edition of the RJk applies with the same two methods; the examples overhaul, renovation and inspection have been in B2.122 since the edition for 2026.
Sources
Frequently asked questions
What is major maintenance?
Periodic work after a longer period of use that keeps an asset in its current condition, without an important part being replaced and without it being ordinary, frequent maintenance. Examples are overhaul, renovation and periodic inspection.
Is major maintenance a cost item or an investment?
That depends on the method you choose. Under the carrying amount method you capitalise it and depreciate it. Under the provision method you build up a provision in advance and the expenditure is charged to it. Only frequent maintenance goes directly to expense.
What is the difference between major maintenance and replacing a part?
When you replace an important part, such as a roof or engine block, you capitalise the new part and write off the old one. Major maintenance restores or inspects without the part becoming a new component.
May I form a maintenance reserve?
No, the name reserve is not acceptable. A maintenance provision is a provision and not part of equity (RJk B2.122).
What changes for the maintenance provision in 2026?
From financial year 2026 you spread the effect of a changed estimate over the remaining build-up period. A catch-up charge in one go no longer fits. Switching from the old way of working is a change in accounting policy that you may apply prospectively.
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