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Development costs.

Development costs.

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Hi All,

Very easy and straight forward question, just to double check my thinking is in line with the rules and correct accounting treatment is applied.

Property has incurred some costs: legal, architectural ad consultancy in the course of obtaining a permission to beĀ converted into residential property. We are capitalising these costs in the accounts... Is that correct and how strict is HMRC with this?

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Hallerud at Easter
By DJKL
10th Nov 2015 14:26

What is intention?

What is intention with the property?

It carried as stock for resale I would debit purchases with the costs and then consider lower of cost and NRV at year end, if held as investment I would debit the fixed asset in the balance sheet, as implied in the question.

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