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
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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
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.
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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