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    BillyMac's Avatar
    BillyMac Posts: 1, Reputation: 1
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    #1

    Apr 11, 2008, 12:14 PM
    Accounting for direct acquisition costs of capital
    Can you capitalize the direct cost (commissions) of bringing new members into a country club?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 12, 2008, 06:35 PM
    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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