AVBK Practice assessment 1

nicolatects

Task 1 is on non-current assets. It says "AMBR has a policy of capitalising expenditure over £500".

I only included the oven and the control display in the cost value as they were both above £500. However the answer seems to include the floor stand too, which is below £500.

My understanding was that you look at each individual part of the invoice when applying a minimum capex policy, as above, does this instead apply to the total of all components of the invoice?

Pian32

CS031 is one purchase with add on's so they've all been included in the cost. The stand in this case is strictly for the combi-steam oven so is included.

nicolatects

Ah I see, thank you so much for the reply!