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Answered 2007-09-08 02:52:20

No . If an assest is expensed it will only flow thru the PnL or Income Statement and not be recorded on the Balance sheet as an asset. That is generic treatment of expensing. In a capitalisation approach the asset will appear on the Balance sheet and annual depreciaiton expenses will be reflected on the PnL ( income statement). The Balance sheet will show the Accumulated depriciation on the liabilities side of the balance sheet and Net value ( ie Asset value less less depreciation amount) on the Asset side of the Balance sheet

No . If an assest is expensed it will only flow thru the PnL or Income Statement and not be recorded on the Balance sheet as an asset. That is generic treatment of expensing. In a capitalisation approach the asset will appear on the Balance sheet and annual depreciaiton expenses will be reflected on the PnL ( income statement). The Balance sheet will show the Accumulated depriciation on the liabilities side of the balance sheet and Net value ( ie Asset value less less depreciation amount) on the Asset side of the Balance sheet

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