Assets Treatment

Assets Treatment

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If I purchase an asset in the UK, but this is then sent overseas (where it will stay permanently) to be used because we have a commercial contract in an overseas country (but no overseas company) I assume I have to expense the cost of the item rather than capitalise it?

Could you please refer me to the accounting standard for this?

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By johngroganjga
28th Mar 2014 12:13

The location of the asset has no bearing on the accounting treatment.  What matters is the nature of the asset and the use to which it is put in the business.  Those principles are the same wherever in the world the asset is located.  There are no rules that say that an asset is a fixed asset on one side of a national border but becomes revenue expenditure when it is transported across a national border.  What made you think that there were such rules?

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