When assets are acquired, they should be recorded as fixed assets if they meet the following two criteria: Exceeds the corporate capitalization limit. The capitalization limit is the amount of expenditure below which an item is recorded as an expense, rather than an asset. Network equipment belongs on your balance sheet as a long-term asset, with its cost spread across future periods through depreciation rather than. IAS 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation charges and impairment losses to be recognised in relation to them. The following are the general list categories of fixed assets: Buildings include an office building, warehouse, and other similar kinds.
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