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Capitalization Policy Example Form

Capitalization Policy Example Form

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Instructions and help about Capitalization Policy Example

hi my name is alex and i'm the product manager for apolis today we're going to talk about a capitalization policy previously we talked about what a fixed asset was and this kind of expands on that so in the realm of fixed assets when you purchase something you might want to know is this an expense or is this a fixed asset well the capitalization policy is a document that your organization has that answers that question what this policy basically says is when you purchase an item over a certain value then it will be considered a fixed asset which means you need to depreciate it over time and it's not a normal expense so your organization would have this capitalization policy so that when you make purchases like a computer you can answer the question is is this a fixed asset or is it not so if you purchase this computer for twenty-five hundred dollars and your capitalization policy says that the threshold is 2000 then is a fixed asset if it's anything less than that then it's just a norm

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