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Topic: Capitalize Relocation Moving Expense? (

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JennyBankers
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Joined: 05 Oct 2009
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Posted: 23 Oct 2009 at 15:35 \| IP Logged

Is a public company allowed to capitalize the moving expenses (i.e. paying the movers to move furniture, etc to new building) or should these expenses be expense in the period incurred?

I have tried looking through the standards but am unable to find anything specific.

Thanks!

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gimpy22
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Posted: 23 Oct 2009 at 16:55 \| IP Logged

I want to say that the moving expenses are not capitalized. I am not quiet 100% sure. Cause I know at work when our retail stores move locations I only see the moving expenses on the store's Profit and Loss statements as a regular expense. I can ask one of our accounting people at work and if they say different I will let you know.

Alex2008
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Posted: 26 Oct 2009 at 11:54 \| IP Logged

You should capitalize that type of expense only if it is a very high amount (material to the size of the company).

If you capitalize the moving expense it should be included in the new building cost.

chevyrcrz28
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Posted: 26 Oct 2009 at 13:36 \| IP Logged

I lean towards expense, although not 100%. Try reading through SFAS No. 146 to see if any guidance exists.

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