Hi,
Assume a company engaging in a restaurant business rents the premise to be used for the restaurant and incurred huge amount to redesign and furnish the premise to use as a restaurant.
My question: can the company capitalise the cost of furnishing the rented premise?
Property
Re: Property
Yes absolutely. This is simply PPE, which we often term leasehold improvements.
There was a recent IFRIC related to these kinds of costs and specifically the period over which to depreciate them:
https://www.ifrs.org/content/dam/ifrs/s ... ements.pdf
There was a recent IFRIC related to these kinds of costs and specifically the period over which to depreciate them:
https://www.ifrs.org/content/dam/ifrs/s ... ements.pdf
Re: Property
Interesting that the existence of a long-life leasehold non-moveable improvement is essentially a factor in the 'broader economics' phrase. All seems to align with common sense though, happily.