Friday, March 13, 2009

GAAP and capitalization of expenses? -

Is it a violation of GAAP to capitalize routine expenses and if it is would it be considered fraud?Also, if a company has maintenance expenses and they postpone those to avoid expenses in the current period does that have anything to do with GAAP?Thanks

Capitalisation of costs depends on whether the costs is:1.Repairs,2.improvements and replacements,3.rearrangements and reinstallations, or4.additions.For accounting treatment of each of the above see the article attached.http://www.summaryworld.com/when-do-you-��

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