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-��
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
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