The company is looking to move into an existing building in a few months, fit-out due to start shortly. In the interim, service charges have already become payable to the management company. Question is, should these periodic building and estate costs be taken to P&L, in the normal way as incurred, or may they be capitalised as part of the cost of getting into the building (in the same manner as applicable professional fees and so on).
Replies (1)
Please login or register to join the discussion.
If the company has already taken ownership of the freehold or lease, then, presumably, the liability to pay these charges started at that date. The decision not to take up occupancy immediately was the company's alone. So I think these costs have to be revenue.