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    Juliewinters's Avatar
    Juliewinters Posts: 3, Reputation: 1
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    #1

    Jan 6, 2008, 02:55 PM
    Capitalize or Expense
    If a company incurs a lot of development expenses relating to setting up their website through which they do their business, can you capitalize these expenses or doyou have to expense
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jan 14, 2008, 04:31 PM
    It depends on many factors, but you could do either perhaps.

    Questions about the materiality for one thing. Did the website cost $200,000 for a company that is worth only 1million? In which case, you should probably capitalize.

    Or if it costs 10,000, you could really make a case for either or.
    Juliewinters's Avatar
    Juliewinters Posts: 3, Reputation: 1
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    #3

    Jan 15, 2008, 05:54 AM
    Well it's an internet startup company, which hasn't started trading yet. But the value of website development is about £50K.
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