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Are cost to get an asset into service, such as the delivery cost we pay when...

Are cost to get an asset into service, such as the delivery cost we pay when we buy equipment, treated as current expense, or depreciated?

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Answer #1

As per my knowledge is concerned in this area it would be depreciated because , while calculating the total cost of machinery or any such other asset, we include the costs which are incurred to bring it into use which includes delivery, installation or erection charges are all added.

Some may feel that it should be treated as current expense but, it is normally considered as a capital expenditures in general practice.

Hence, I feel it is always preferable to depriciate such costs.

Thank you.

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