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-   -   Capitalize or Expense (https://www.askmehelpdesk.com/showthread.php?t=169500)

  • Jan 6, 2008, 02:55 PM
    Juliewinters
    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
  • Jan 14, 2008, 04:31 PM
    CaptainForest
    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.
  • Jan 15, 2008, 05:54 AM
    Juliewinters
    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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