Written capitalization policy

It's a very subjective area! Write off those items that are, in value terms, immaterial. But what's material? Only the board can decide that. And don't forget that where a group of assets are acquired (say5,000 mobile phones for distribution amongst the employees) in aggregate that value could b ematerial even though individual phones aren't. Let the board decide a policy, let the auditor agree reasonableness, and then stick to that policy. Probably better to arrive at an amount to be considered immaterial - say $1,000 - but that value is clearly dependent upon the individual company. I was lecturing materiality many years ago and a student said "Mike, the job I was on before I came on the course was a company where we found an error for £5 million but we ignored it on the grounds of immaterialty" There's no hard and fast rule that I can suggest (nor one that you can suggest, either!) Sorry