Always confuses me this. I have a lighting technician client and this year he has purchased replacement lighting, cabling etc. My gut instinct is for maintenance repairs and renewals (VT doesn't have the renewals bit but Taxfiler does) but not sure strictly if that's the right category or not. Purchases doesn't seem right as they are not for resale.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Couple of issues to consider
Duration of asset use
Materiality
Capitalisation policy
Some of these technician have huge expensive bits of kit so its hard to know without the above info.
If you dont capitalise then expense it. R&R is ok. If I recall I added 'renewals' to the 'repairs' bit in VT for one of mine, but Ive not got access to VT just now.
Where is Doug? Not seen him for a few days!!!!!!! Hopefully not being battered by the January onslaught.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
is there a requirement to renew periodically (as with the engines on a plane or lining of a kiln?).
If so (materiality assumed) you should be looking at capitalise and depreciate over useful economic life.
The general rule for when to capitalise assets after initial recognition are where they :
Enhance economic benefit
Restore previously consumed economic benefit
Replace seperately depreciated component
The lights and wiring did nt break so they are repairs and renewals but rather a component of the asset tthat depreciates at a seperate rate. To my mind, if they are material to the business they should be recognised and depreciated seperately. If they are immaterial I would recognise as an asset but through expenses rather than capitalisation.
or in other words... What Joanne said. lol.
Happy Monday. Some scallywags pulled the obvercables down for the train so been working from home today.
laters,
Shaun.
__________________
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.
Where is Doug? Not seen him for a few days!!!!!!! Hopefully not being battered by the January onslaught.
I am still here, you can't get rid of me that easy
Had some issues at home and thought I had the Jan workload under control but that went out the window, roll on Friday!Got an IHT question of my own to post later when I get some time, not had a chance to look into it properly myself as yet
Hi John, agree that I would certainly be looking at capitalising the equipment
EDIT to sort out gaps between sentences!
-- Edited by Artois on Tuesday 29th of January 2019 07:09:14 AM
-- Edited by Artois on Tuesday 29th of January 2019 07:11:21 AM
-- Edited by Artois on Tuesday 29th of January 2019 07:12:42 AM
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Some scallywags pulled the obvercables down for the train so been working from home today.
laters,
Shaun.
What? You got advanced warning?!!!!!!!!!!!!! They usually let you get to the station, get on the train, pull out of the station and not let you get off the train - for 3 hours minimum!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Where is Doug? Not seen him for a few days!!!!!!! Hopefully not being battered by the January onslaught.
I am still here, you can't get rid of me that easy
Had some issues at home and thought I had the Jan workload under control but that went out the window, roll on Friday!Got an IHT question of my own to post later when I get some time, not had a chance to look into it properly myself as yet
Hi John, agree that I would certainly be looking at capitalising the equipment
EDIT to sort out gaps between sentences!
-- Edited by Artois on Tuesday 29th of January 2019 07:09:14 AM
-- Edited by Artois on Tuesday 29th of January 2019 07:11:21 AM
-- Edited by Artois on Tuesday 29th of January 2019 07:12:42 AM
Oh heck, although great to be so busy if the dosh is rolling in! Glad you are still 'lurking'
Lol on the gaps. One of them is for ads, so try as you might......
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Some scallywags pulled the overhead cables down for the train so been working from home today.
laters,
Shaun.
What? You got advanced warning?!!!!!!!!!!!!! They usually let you get to the station, get on the train, pull out of the station and not let you get off the train - for 3 hours minimum!
Yep, up at the crack of dawn, got to the station and thought... Am I late, did I miss it... Where were all the people.
Eventually got a tannoy announcement that the overheads were down and they would be arrnaging a replacement bus service... Yep, heard that one before!
Went and worked at home.
When they hold you prisoner on the trains have you ever noticed that such is only ever on the days when you can't get a seat!
__________________
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.
C'mon John, whats the significance and in what order are the letters... (YABL or YBAL)... Assuming YABL so far I've got "Y Aye Bonnie Lassie"
__________________
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.
Some scallywags pulled the overhead cables down for the train so been working from home today.
laters,
Shaun.
What? You got advanced warning?!!!!!!!!!!!!! They usually let you get to the station, get on the train, pull out of the station and not let you get off the train - for 3 hours minimum!
Yep, up at the crack of dawn, got to the station and thought... Am I late, did I miss it... Where were all the people.
Eventually got a tannoy announcement that the overheads were down and they would be arrnaging a replacement bus service... Yep, heard that one before!
Went and worked at home.
When they hold you prisoner on the trains have you ever noticed that such is only ever on the days when you can't get a seat!
What is a seat on a train?!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
C'mon John, whats the significance and in what order are the letters... (YABL or YBAL)... Assuming YABL so far I've got "Y Aye Bonnie Lassie"
Oh I know, I know!!! Is it a quiz Q?
Didnt see this earlier, was on my phone!
Stands for Yo..... Bo..... & Ac.....Lt. Do I get the prize? Is it chocolate?
Well done Joanne. Obviously Shaun was that knee deep in corporate work my thread last year passed him by
The prize could well be chocolate, or even one of those molotov cocktails you have as your avatar, who knows!
Actually that logo is too in your face, I did it in a rush last night then overcropped it on one side so I had to recrop it. Will redo it over the weekend and make it a bit more subtle.
PS Seen your comments on vat reclaim thread and I'll respond on Friday, as I'm more or less on target with SA but behind to where I wanted to be.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
