Capitalise or not?

Capitalise or not?

Didn't find your answer?

Hi

If we can capitalise the cost of purchased client list, can we capitalise web redirected business as well?

According to the definition for capital asset it might qualify?

“A type of asset that is not easily sold in the regular course of a business's operations for cash and is generally owned for its role in contributing to the business's ability to generate profit”   

many thanks

Replies (1)

Please login or register to join the discussion.

avatar
By essex accountant
25th May 2014 18:34

Web site
You could capitalise the cost of your website, and possibly the cost of something like Google Adwords, if that was leading to regular leads. The website cost could be written off over 3 - 5 years, but I can't imagine any other costs having a life of more than 12 months, so it would be more appropriate to treat such costs as prepayments. What else would you capitalise?

Thanks (1)