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Can the signwriting cost of a van be capitalised as part of the cost of the van?
Do you think it should? Let me know and I can let you know if you are correct or not. Thanks
I do not think so because it is not a cost necessary to get the asset to its present location and condition.
I’d say that initially when we purchase the van and have the signwriting/logo painted on the side of the van then I think we could capitalise as although the van will work, it is an initial cost that we are paying as part of the overall purchase to get the van operating as intended, i.e. to help promote our brand.
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