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Capitalising start up costs

  • 09-10-2009 12:59pm
    #1
    Closed Accounts Posts: 25


    I am starting up a new franchise. My startup costs are roughly 120k of this its 100k equipment and 20k project management fee to franchise master. Can i capitalise the full 120k or do i take the 20k hit in year one and just capitalise the 100k equipment.


Comments

  • Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    Assuming the Franchise is viable and worth something you can capitalise and amortise it over the life of the franchise agreement.

    Hope this helps

    Dbran


  • Closed Accounts Posts: 25 halfthetrack


    Thanks dbran


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