Capitalization Threshold: If you raise it, do you write off?
Not what you're looking for?
If a Company change it Capitalization Threshold from $3,000 to $5,000 what is the accounting (GAAP) guideline for the company to write off the assets in the old threshold of $3,000.00?
Purchase this Solution
Solution Summary
Your tutorial is 144 words and a reference. The expert examines the capitalization threshold.
Solution Preview
I love a nice practical question!
When companies have a change in estimate, GAAP requires that the change is applied prospectively. It is applied in the current period and going forward ("prospectively"). An error is changed retroactively. So, if they change their estimate of what is large enough to be capitalized, they would apply it to this period and ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.