Legal Fees

Legal Fees

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Hello

We have a client who runs a care home. They were looking at extending and wanted us to prepare projections of forecasts of income with the new beds before they went ahead.

They went ahed with the extensions. Will the cost of the forecasts be revenue or capital?

Thanks
Anon

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By User deleted
20th Aug 2008 13:46

An allowable revenue cost
It sounds as what was done was a budget or forecast for the business.

It really has nothing to do with the asset/extension but is about managing the business and as such is a revenue cost and allowable

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By User deleted
20th Aug 2008 11:02

Revenue, IMHO anyhow
It is normally held that any costs associated with bringing the asset into a condition to be used can be capitalised. Anything else is revenue, which would include costs of your forecasts beforehand in my humble opinion, Mike

www.mpa.me.uk

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By pawncob
19th Aug 2008 17:40

Legal Fees
Well as the costs didn't bring a new asset into being, I think they are a revenue item, but you could argue it either way.

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