We needed to obtain an assembly permit to hold events in our leased office space. Can the permit and related professional fees be capitalized as leasehold improvements?
Capitalization of building permits/related fees on leased space
Answers
I have never done this. You could put this in prepaids and amortize over the respective period, but I am guessing the materiality does not make this worthwhile. You will be hard pressed to find guidance to support booking this as a fixed asset.
What was the total cost of the permit, and over what period does the permit have potential useful value?
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Accounting