Costs that can be capitalized from an acquisition?

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mrwynkler
mrwynkler Registered Posts: 1 New contributor 🐸
in General discussion
Hi people, its been a few months since I learnt of the cost that can be capitalized when an asset is purchased. The only thing I can remember is transport costs of the asset to its set location.

Any others, or a resource in which I can find the rules on this would be very much appreciated!

Thanks

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  • knighttr
    knighttr Registered Posts: 5 New contributor 🐸
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    You can also capitalise the setting up costs of the asset such as laying a concrete foundation for a building or configuring a machine to work as it was designed to work.
  • knighttr
    knighttr Registered Posts: 5 New contributor 🐸
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    Also legal fees and license fees, if any, and interest on borrowing directly attributable to the asset. Also subsequent expenditure can be capitalised if it enhances the economic benefits of the asset 'in excess' of its previously assessed standard of performance. General maintenance costs etc cannot be capitalised.

    My info is from the FTC Foulks Lynch Unit 11 book which I find is very good.

    Hope this helps.

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