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FRS 102 S1A - showroom construction/depreciation

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I have a company that has spent money in it's first year building a showroom for their business. 

I have capitalised all costs, but not depreciated the asset as it is still being built and not ready to be in use. My question is, how would one go about determining when the asset is ready and in use? Is it the date the showroom is open? The lights are on? 

Any views appreciated. 

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By johngroganjga
10th Jun 2020 15:32

I would say when it is actually open to customers.

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By paul.benny
10th Jun 2020 16:08

Depending on the product, I might delay until the business starts accepting orders through the showroom or even until deliveries commence.

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By Cheshire
10th Jun 2020 16:18

Quote:

I have a company that has spent money in it's first year building a showroom for their business. 

I have capitalised all costs, but not depreciated the asset as it is still being built and not ready to be in use. My question is, how would one go about determining when the asset is ready and in use? Is it the date the showroom is open? The lights are on? 

Any views appreciated. 

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