USA Capitalization of preliminary design for building expansion

Joined
Jan 16, 2017
Messages
1
Reaction score
0
Country
United States
Hi, my company is looking to expand one of our manufacturing facilities and we're trying to figure out whether preliminary/conceptual designs can be capitalized into the building cost or if they must be expensed. All I'm finding online is that if the project is probable, preliminary costs directly related to the project can be capitalized. However, the controller is questioning the fact that it is being talked about as "preliminary" and "conceptual." Since this could result in multiple designs in which only one ultimately gets finalized, his inclination is that it should all be expensed until there is a final design in place. I'm trying to find guidance to either confirm or refute this. Does anyone have any input on how this should be handled? If you know where to find guidance in writing, please include it. Thanks!
 

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