Cost Capitalisation

[hamza.el]

Hello team ,

We are currently in implementation phase in order to change characteristics of product delivred due to customer demand , this application require a purchase of some items or accessory for a machine already capitalized and generating depreciation in our fixed asset systeme . what will do for this case ? cost of nv accessory it represents more than 10% of machine value.

Please note : Systeme not allowed to add value of accessory to initial cost of machine and generate again depreciation ,even if it will be possible our previous financial statments will be affected and becomes not relevente .

 

[StanleyR1]

Treat the improvements as a separate item on your asset schedule. Depreciate it over an appropriate period of time--either the time remaining on the equipment or longer if it extends the life of the equipment.