[nirmal_soni899]

Hello

Suppose if a client purchases iPad on 1st March and on the same day, along with the iPad, he buys its cover as well.
Ipad is necessary gadget for the business so I would prefer to capitalise it.
However, the iPad cover, can it be capitalised or not ?
Ipad costs £799 and the cover costs £35.
Which of the two can be capitalised ?

Thank you in advance

[ebaines]

If you purchase several items that are all part of the same "project" (i.e. bought at the same time in support of the same purpose) you may capitalize all the items, even though the cost of one or more of the items if bought separately fall below the capitalization threshold. At least that's the policy we use in my company.

[nirmal_soni899]

If you purchase several items that are all part of the same "project" (i.e. bought at the same time in support of the same purpose) you may capitalize all the items, even though the cost of one or more of the items if bought separately fall below the capitalization threshold. At least that's the policy we use in my company.

Hello

Firstly thank you for your fast response.
However, back to my question, I want to further ask you that do we need to separately report the iPad and its cover, or show them as one in the financial statements?

Thank you