Do You Capitalize Service Agreements

Hello Silvia, Should the cost of an electronic access system to the control door be capitalized in both property and rental buildings? The buildings, nor the lease, are new. Thank you very much. Thank you for the advice here very useful. I have a question that I consider to be a grey area. If I make improvements to a building, should I capitalize on advertising costs to secure a project manager? Dear EveSim, if you really can`t acquire the premise without this compensation, then yes, these are directly unthinkable costs and you can capitalize. S. There is an exception if you can actually capitalize the pre-operating costs. Inexhaustible collections, works of art and historical treasures, where economic benefits or performance potential are so slowly exploited that the estimated lifespan is exceptionally long, are not amortized. The organization can also capitalize on the costs of commissioning the asset for the company, for example. B the costs of transporting the asset to the organisation, taxation and installation. Leased equipment and facilities should be activated if the lease agreement meets one of the following four criteria.

A contractual leasing obligation for an investment that meets one of the following four criteria should also be activated: Hello Silvia, could you ask yourself if the capitalization of licenses depends on the transfer of the entire ownership to the buyer? Can we capitalize, as intangible assets, licenses that give us the right to use them for several years? Hello Richmond, the mining industry is an exception, since you should follow IFRS 6.

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