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Home > Business & Careers > Accounting   »   Accounting for direct acquisition costs of capital

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Old Apr 11, 2008, 12:14 PM
BillyMac
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Accounting for direct acquisition costs of capital
Can you capitalize the direct cost (commissions) of bringing new members into a country club?

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Old Apr 12, 2008, 06:35 PM   #2  
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Well, I'm trying to figure out how country club members are capital.

Presumbly the members are paying membership dues. Which is part of your revenue. Therefore the cost of commissions is part of the cost of your revenues. i.e. Cost of Sales. That's a revenue expenditure, not a capital expenditure. Something like commissions for bringing in new members is basically marketing for the club. There's nothing special here that would turn that into an asset.
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