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    Capitalization Threshold: If you raise it, do you write off?

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    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?

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    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 ...

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    Your tutorial is 144 words and a reference. The expert examines the capitalization threshold.