Capitalising costs

PGM

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

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

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?)