Gerald barongo


gerald barongo

p activity or a development or construction activity is a matter of judgment based upon case specific facts d i f t and circumstances. Start-up activities include activities related to Start up organizing a new entity Start-up activities also include costs related to p performing feasibility studies and should be expensed as incurred. Copyright 2010 Deloitte Development LLC. Operational Phase Placing facility in service Producing power for sale under PPA Ongoing maintenance activities. Business Initiation Costs Accounting Acco nting Treatment. Construction of Power Plants Capitalization Issues Capitali ation Iss.

Gerald barongo
gerald barongo

gerald barongo

U.S., ruled that costs incurred to enter the credit card business by banks that were previously engaged in retail loan making were deductible In FMR Corp. Development Costs Accounting Acco nting Treatment. Costs incurred prior to initiating an acquisition or construction of a project, but after initiation If not related to a specific p p y these costs p property should be expensed If related to a specific project which management has concluded is probable of completion. Late stage development costs are not capitalized for financial reporting purposes Examples:. Bid preparation Internal costs for analysis, legal research and early g g g stage engineering Costs of a development office Organizational costs of new legal entities. Examples of Business Initiation Costs Accounting Acco nting Treatment. Company s experience Examples may include: ece p of governmental app o a o pe e a approval or permits bruten lund ukulele tab s Receipt o go e Execution of power purchase agreement (unless merchant facility) Agreement for acquisition of significant plant components. 1965) Costs incurred by the taxpayer for training in y y p y g years prior to receipt of its FCC broadcasting license are not ordinary business expenses T d or business d Trade b i deemed t b i b th court. If costs are capitalized, are they a separate p, y p intangible or part of the grant/ITC-eligible plant basis? Issue- When does a cost cease to exhibit the Issue characteristics of a start-up cost? Member Deloitte Touche Tohmatsu Limited. Project costs should be capitalized when management believes a specific project is probable (i.e., 50 likelihood) of completion.

gerald barongo


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