Hi - one of my clients has just been charged for costs associated with networking their computer system - the costs have included two servers, plus installation and configuration of the servers. I'm unsure as to whether to capitalise the costs (total costs £2.1k) or just put them through the P & L account - if so, what code would I use? Office equipment, computer software?? Thanks
It meets the definition of a seperately definable asset.
The instalation of the asset would be incorporated within its cost (As all costs incurred in bringing the asset to condition for use).
I would capitalise and depreciate down to zero over four years as networking has no discernable resale value.
kind regards,
Shaun.
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Shaun
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