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