Manufacturing.
Wondering best practice for handling back up equipment that is purchased (over our capex policy). If it's going to have installation costs later, what balance sheet account should it go to if it's not ready for use? The installation costs on this particular item won't be huge, maybe a couple grand, maybe if we determine the install costs are immaterial we go ahead and capitalize it and start depreciating?
Wondering best practice for handling back up equipment that is purchased (over our capex policy). If it's going to have installation costs later, what balance sheet account should it go to if it's not ready for use? The installation costs on this particular item won't be huge, maybe a couple grand, maybe if we determine the install costs are immaterial we go ahead and capitalize it and start depreciating?