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Capital v Revenue

Capital v Revenue

We have recently received accounts back after audit. In a commercial property that our client uses for his business the auditor has moved a new toilet block from capital to revenue and improvements to a roof (from flat roof to pitched roof) from revenue to capital. I think this is the wrong way round on both counts, can anyone suggest the relevant guidance that should be referenced in these circumstances. 

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01st Mar 2016 10:10

Horse's mouth

Has the auditor not discussed or explained the reasons for the suggested changes?

That should be your first port of call.

I understand why you are not clear why the adjustments are appropriate, but the way forward is to find out the rationale for them, from the horse's mouth, and take it from there.

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