We are a startup large power generation company, and all our projects are in predevelopment phase, and we have multiple people working on different projects, hence my question is can I capitalize their wages & salaries since they are working on those specific projects.
USA Capitalization of Labor Cost
- Thread starter Rsingh11
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If there are specific PP&E assets that are probable of being constructed, and employee costs directly related to such specific projects, and NOT administrative / overhead costs, then yes, it is reasonable to capitalize those. But if in this scenario you are still in predevelopment phase, it probably means that you cannot yet argue that specific assets are probable of being constructed…