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Hey guys,
I have a start-up company and am currently debating myself whether to capitalize or expense outright the repairs and maintenance I incurred to improve the unit I’m leasing at. I visited the standard and I ended up with two options.
(1) Leasehold improvement as capital lease – here none of the 4 conditions are met.
(2) Capitalizing Repairs and maintenance – Better, Restore and Adapt condition – pretty much applied to the three conditions. We renovated the whole unit’s interior that meets our needs to make the business running.
I am doing a pitch with investors next month and some investors are accounting and finance geeks that a slight misinterpretation of the accounting standards would mean that you flunk your business proposal.
Any thoughts? thanks in advance.
AUD - NINJA in Training
BEC - 80
FAR - 82
REG - NINJA in TrainingIf ain't broke, don't fix it
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