Organisation is currently purchasing old units which require refurbishment before they can be let by the organisation.
Council tax and utilities bills for the properties are received and paid by the asssociation during the refurbishment phase. What should be the acounting treatment of these expenditure? Should these expenditures be capitalised? This properties will be let as soon as they are of decent standard. Development director wants them capitalised but the Finance director is against this treatment and would rather have them expensed in I&E.