USA Capitalization of Consulting Services

Joined
Jan 9, 2016
Messages
1
Reaction score
0
Country
United States
Can consulting services related to the development of a strategy for maintenance agreements for a recent major equipment purchase be capitalized? The services include: strategize major system types requiring maintenance contracts and review with potential vendors. These services are in direct connection to newly purchased infrastructure equipment.
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,445
Reaction score
332
Country
United States
No.
Costs were not related to the equipment but to the service agreement. Service agreements are not capitalized as fixed assets. When they are on the balance sheet it is only because they were prepaid.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top