Leasehold Improvements

[jestela002]

We hired a company to come in and break down cubicles, reconfigure the space, re-do wiring and rebuild the cubicles to increase the amount of seats we could hold.

Are these labor costs capitalizable as leasehold improvements?

Please provide authoritative guidance as I cannot seem to find it.

Thanks,

 

[xavi14]

IAS 16 tells us to capitalize all costs necessarily incurred in bringing assets into a condition as intended by management.

Based on that principle you could capitalize it?