Capitalize Moving Costs?

Can you capitalize the cost of moving to a new leased office according to GAAP?

No, according to IAS 16 Property Plant & Equipment. Para 19 is excerpted below:

19. Examples of costs that are not costs of an item of property, plant and equipment are:
(a) costs of opening a new facility;
(b) costs of introducing a new product or service (including costs of advertising and promotional activities);
(c) costs of conducting business in a new location or with a new class of customer (including costs of staff training); and
(d) administration and other general overhead costs.

So the costs of moving to a new location should not be capitalized. That makes sense as the move has not improved the ability of any asset to generate revenue. I would expense off the moving expenses.

Tags

　　Meeting Room 　　Meeting Space 　　Conference Room 　　Offices to Lease 　　Rent Offices 　　Business Centers 　　Service Offices 　　Branch Offices 　　Temporary Offices 　　Shared Offices

Related information

What is the best way to get rid of scorpians?

Get an exterminator that knows scorpions & can get rid of them throughout the Apartment Complex. Our complex is currently treating the outside of our building every week to kill scorpions. We...

Life can be so complicated, help me understand (=?

Some people don't realize a good thing until its gone. Seems to me that you were always there for her when she needed you. You were the dependable one, the one who will call. So, she expect...

This is long but please i need your advice?

If she cared about you as a friend, she would be more understanding of your feelings. You probably feel like you have to walk on egg shells around her or something. She seems to be the insensitive ...

Need advice to ease the stress?

They are probably doing a yearly inspection on the property. most good maintenance companies do, they come in and change the batteries in the fire alarms and all that. nothing major. i would just t...

Lost USPS package?

USPS will only reimburse if there was insurance on the package. Did anyone sign for the package ? Was a signature required ? How was the gift paid for? If by a credit card, he may be able to...

Powerline Ethernet Adapters?

As long as the lines are all on the same circuit and the individual metering is before the breaker box then you should have no problem. As for hook up a router to as long as your adapter has an E...

My neighbors suck. What should I do?

I had some neighbors like that too. What you can do is call the cops on them. Then after a few times, goto the police station and get copies of the police reports, then take the reports to your man...

What is the fastest way for me to learn Spanish?

Websters new Spanish English Dictionary is pretty good. Getting to know the people is good. They are happy when someone cares enough to learn there language. You have to practice it just about e...