Capitalising costs

PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
I think the answer is a no, but want to be sure;

Is it possible to capitalise costs relating to implementing a quality ISO system?

I thought no, because it doesn’t relate to a project which will have likely future income, but, the whole point of the quality system is the large investment will make the company more profitable in the future..


  • slackda
    slackda Registered Posts: 460 Dedicated contributor 🦉
    i would agree,

    As you can't reliably measure the benefit that the ISO system would bring.

    but on the other hand if you were invesiting say a very large investment in implementing and you could reliably measure the cost and the associated beneifit, i.e it meant you could definatly secure £xM contract with y supplier. there is a good arguement for capitalisation.
    they it would come to how do you amortize it? how would you reliably review the value of that impletmentation in 1 year......
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Thanks, thats what I feared...

    My next question then;

    Can the item be recorded sperately as exceptional costs (I don't think you can use extraordinary any more?)
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