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Capitalisation threshold

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Capitalisation threshold

Viewing 6 posts - 1 through 6 (of 6 total)
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  • November 22, 2020 at 9:53 pm #596087
    eagledave
    Participant
    • Topics: 23
    • Replies: 294
    • ☆☆☆

    Hi,

    Please may I ask for your guidance on how to calculate the appropriate capitalisation threshold for the company?

    Thanks

    November 23, 2020 at 8:19 am #596103
    Stephen Widberg
    Keymaster
    • Topics: 15
    • Replies: 3356
    • ☆☆☆☆☆

    Unclear on your question. Please elaborate.

    November 23, 2020 at 9:33 pm #596200
    eagledave
    Participant
    • Topics: 23
    • Replies: 294
    • ☆☆☆

    Thanks, I would like to change the threshold in capitalising fixed assets. How do I establish a new threshold? The current threshold is outdated as it’s been used for over 10 years.

    I understand that factors to consider would be the size of the company and also the materiality of the impact to the P & L.

    Any advice on how to calculate the correct threshold?

    November 24, 2020 at 8:05 am #596237
    Stephen Widberg
    Keymaster
    • Topics: 15
    • Replies: 3356
    • ☆☆☆☆☆

    I’m afraid that’s a judgement call. It won’t be examined.

    November 24, 2020 at 12:23 pm #596269
    eagledave
    Participant
    • Topics: 23
    • Replies: 294
    • ☆☆☆

    Thanks, that’s very helpful.

    November 25, 2020 at 2:12 pm #596417
    Stephen Widberg
    Keymaster
    • Topics: 15
    • Replies: 3356
    • ☆☆☆☆☆

    My pleasure.

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Viewing 6 posts - 1 through 6 (of 6 total)
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