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Auction Expenses

When a capital item (e.g. Plant, vehicle etc) is purchased at auction and a buyers

premium is charged by the auctioneer, how should this be treated? Does it form part of

the cost of the item (capital) or can it be treated as a revenue expense and if so, how

should it be categorised?

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04th Aug 2010 10:40

There's probably a definitive treatment outlined somewhere but..

 

I'd personally expense it as a professional fee charged by the auctioneer, unless there is some commercial advantage to treating it all as part of the asset.

 

 

 

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By neileg
04th Aug 2010 11:15

Why not?

FRS15 is your guide. I can't see why the fees aren't a cost of bringing the fixed asset into use.

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04th Aug 2010 12:43

Capitalise

It's part of the cost of the fixed asset.

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