Fixed Assets for two companies

[saad25]

Hi All,

If two companies, separate legal entities, are sharing office space, IT equipment and office furniture, where do we book the fixed assets under which books? how will the expenses be split? by office area? or just split in the middle? Thanks!

regards,

 

[bklynboy]

What we do is hold all the assets in one company and allocate the depreciation to the other company as it emerges based on a cost model which gets included as part of the billing process. This is one option. I would not recommend splitting the asset as it makes it difficult to track and only one company should have legal title.