Capitalisation of EIA — OpenTuition Forums

HHusen10y ago

Dear Sir, Hope you keeping well. Had a question relating to whether Environmental Impact Assessment & Soil Testing Charges for a piece of land. The company has not yet started operations. Can both be capitalized or it should be expensed? Thanks In Advance

MikeLittleTutor10y ago#1

These look to me to be expendable items, not capitalisable There is no suggestion in your question that the land is already owned and it's easier for me to imagine that it isn't yet in the ownership of the entity that has requested the testing and the assessment So these are pre-purchase costs with no guarantee that, as a result of these tests, the land will be purchased OK?

HHusen10y ago#2

Thanks for that

MikeLittleTutor10y ago#3

You're welcome

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