Ancillary Charges
- Chad
Owned by Chad
Corresponding Policy: See ‘Fixed Assets Accounting’ policy.
Corresponding Forms: N/A
Process: Deciding what should be Capitalized and Seeking Additional Information for Ancillary Charges
The capitalized cost of the fixed asset should include all ancillary charges necessary to place the asset into service. Examples of ancillary charges include freight and transportation costs, site preparation costs, and professional fees.
The additional cost of maintenance agreements and extended warranties are not capitalized because they can be separately identified and are not required to place the asset into service