I think it would depend on what the policy is, if there even is a policy. If no policy, I would look what has happened in the past - assume the playgroup would have bought equipment in the past
If your question relates specifically to the sand, I would capitalise along with the pit.
For sandpits a general rule is capitalise the sand pit (assuming materialarity) and expense the sand.
Where as is the case here the sand is part of the cost of the asset then you capitalise the sand as part of the asset on the basis that the cost of the asset was the sanpit and the sand was free.
HTH,
Shaun
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
