Business Accounting and Bookkeeping
Business Finance
Financial Statements
Punctuation and Capitalization

What is capitalisation of fixed assets?

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Wiki User
2014-05-20 14:28:22

Capitalization of fixed assets means the assets which are

acquired with a useful life of atleast two years, and recording the

cost of that fixed asset in balance sheet.

When an asset is removed from the work in process (WIP) category

and is recorded in book of accounts as an asset that can start

generating revenue, it is then that it can start to be capitalised

and duly depreciated.

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