Beginner
Fixed asset capitalization analysis and coding guide
Helps decide whether expenditures should be capitalized or expensed, and maps them to fixed asset classes. Produces a coding guide and example entries for consistent treatment.
Evaluate capitalization vs expense for the following spend items.
Inputs:
- Spend items list: {spend_items} # description, vendor, amount, date, project, expected life
- Capitalization threshold: {cap_threshold}
- Useful life policy by asset class: {useful_life_policy}
- GAAP/IFRS basis: {accounting_basis}
Deliver:
1) Decision table: Item, Capitalize? (Y/N), Asset class, Useful life, Rationale, Required support.
2) Recommended GL coding (accounts, cost centers, projects).
3) Example journal entries for additions and in-service date.
4) Risks/grey areas and questions for engineering/ops.
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