US-GAAP Costs versus Capitalization

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Martin Rommel

US-GAAP Costs versus Capitalization

🔥NEW Hello, I need a US-GAAP Accounting advise for following business cases:
1. A new stairs for a production building. It is a metal stairs replacing current concrete stairs. Can I capitalize this if the whole building has an asset number and is not fully depreciated yet?
2. The replacement of electricity distributors on a factory campus. Can I capitalize this if the value of each electricity distributor is above 2.500$? Currently these components are part of the factory building (like 1).


US-GAAP Costs versus Capitalization

In these cases, if the replacement preserves the value of the assets, it's cost; on the other hand, if the value of the assets increases, it's capitalization.

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