Capitalisation of Asset

amos71 Registered Posts: 10 Regular contributor ⭐ ? ⭐
Can anyone tell me what associated costs it it possible to include with the assets price on the balance sheet? I have an asset that was delivered to our office. Can I include the delivery cost in the assets value?


  • amyjayne27
    amyjayne27 Registered Posts: 314
    Was the delivery cost paid by the sender?

    As far as I can see (but is probably wrong!!) Carriage inwards and carriage outwards is both shown on the P & L account, not anywhere on the balance sheet.

    As far as I know, with the balance sheet all you can put under fixed assets is cost price of the fixed asset, depreciation and the net book value.

    Hope this helps, and if its wrong I do apologise, I am learning!!

  • crispy
    crispy Registered Posts: 465 Dedicated contributor ? ? ?

    You can capitalise the costs of aquiring the asset plus bringing it to it's current location and any further costs of getting the asset into a workable condition (eg. installation costs).

    I would therefore include the carraige inwards cost within the cost of the asset and include on the balance sheet.
  • amos71
    amos71 Registered Posts: 10 Regular contributor ⭐ ? ⭐

    Thanks thats a great help
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