How to Determine Whether to Capitalize or Expense an Asset

November 17, 2021

Capital Asset Management
capitalize or expense an asset

Acquisitions are not always straightforward, making it difficult to decide whether to capitalize or expense an asset.

Our staff assists public clients daily with asset capitalization and we frequently encounter scenarios that are not as simple as the rules state. 

That’s why we’ve created a Capitalization Decision chart to help bring the decision down to the most basic steps: 

 

capitalize or expense an asset

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At HCA, we specialize in capital asset management, accountability, and valuation. We’d love to help you when it comes to determining whether to capitalize or expense your assets. Simply reach out to Greg Sheahan here and we’ll get started. To learn more about when to capitalize versus expense, check out this guide.