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Hi All,
I'm curious how GAAP would have us treat the following scenario:
Company A is in the process of developing a website alongside Company B, a related party. Company A will provide site content and branding, Company B will manage transactions/fulfilment, post sales, provide customer service and manage customer retention.
A third party will also be employed to complete SEO work for 3-5 months, for a fee.
I feel comfortable recognizing which expenses related to this project can be capitalized -- however, I'm uncertain whether this should be on Company A's balance sheet, Company B's, or both!
Any help and logic behind your conclusion would be greatly appreciated.
I'm curious how GAAP would have us treat the following scenario:
Company A is in the process of developing a website alongside Company B, a related party. Company A will provide site content and branding, Company B will manage transactions/fulfilment, post sales, provide customer service and manage customer retention.
A third party will also be employed to complete SEO work for 3-5 months, for a fee.
I feel comfortable recognizing which expenses related to this project can be capitalized -- however, I'm uncertain whether this should be on Company A's balance sheet, Company B's, or both!
Any help and logic behind your conclusion would be greatly appreciated.