Dear Members,
I asked this question earlier in this forum but didnot received any conclusive response. So I am asking this question again in hope that someone can provide some guidance.
My clien has bought a new leasehold premises. Before buying the leasehold premises, the client conducted due deligence through third party professionals. They also charged the client £ 10K for acting on behalf of client in acquiring the leasehold premises.
These expenses currently sit in P&L. I am a bit confused, whether these should be capitalized with the cost of building as it specifically relates to acquiring the lease and carrying out due deligence, other surveys for this property.
Any comments?
Replies (5)
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And, as the OP appears to be talking about different expenses than in the previous question, my reply there should not automatically be taken as applying to these different expenses.
No problem in treating survey fees as part of the cost of the asset for financial reporting purposes. Although not specifically mentioned, these are within the costs that sections 17.10 (a) and (b) are getting at.