- June 29, 2015
- Your Price: FREE
APQC recently fielded a member's question about the proper accounting treatment for fixed assets, specifically, the level at which capitalization is applied. This seemed to be a straightforward question, but after checking with experts, we found several twists and turns. In short, the standard practice is to expense the cost of fixed assets up to a certain dollar threshold, and capitalize expenses over that threshold by one of several depreciation methods. In general, though, the threshold dollar amount depends on company size - a company the size of Intel would have a much higher threshold than a small grocery store.