Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Capitalisation threshold

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

Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 22, 2020 at 9:53 pm #596087
    eagledave
    Participant
    • Topics: 22
    • Replies: 292
    • ☆☆☆

    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: 17
    • Replies: 3444
    • ☆☆☆☆☆

    Unclear on your question. Please elaborate.

    November 23, 2020 at 9:33 pm #596200
    eagledave
    Participant
    • Topics: 22
    • Replies: 292
    • ☆☆☆

    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 The current threshold is outdated as it’s been used for over 10 years.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: 17
    • Replies: 3444
    • ☆☆☆☆☆

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

    November 24, 2020 at 12:23 pm #596269
    eagledave
    Participant
    • Topics: 22
    • Replies: 292
    • ☆☆☆

    Thanks, that’s very helpful.

    November 25, 2020 at 2:12 pm #596417
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    My pleasure.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Capitalisation threshold’ is closed to new replies.