more-arw search

Q&A Forum

Capitalization of building permits/related fees on leased space

We needed to obtain an assembly permit to hold events in our leased office space. Can the permit and related professional fees be capitalized as leasehold improvements?

Answers

Topic Expert
Patrick Dunne
Title: Chief Financial Officer
Company: Milk Source
(Chief Financial Officer, Milk Source) |

I have never done this. You could put this in prepaids and amortize over the respective period, but I am guessing the materiality does not make this worthwhile. You will be hard pressed to find guidance to support booking this as a fixed asset.

Mark Sutherland
Title: CFO
Company: Profit By Design CFO & Controller Servic..
(CFO, Profit By Design CFO & Controller Services) |

What was the total cost of the permit, and over what period does the permit have potential useful value?

4143 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.