r/FPandA•
santinakpan

What's the underlying logic behind capitalization?

I don't mean financial-wise. I understand we do it because an asset has a useful life beyond 1 year, and it spreads out the cost thereby improving NIAT. I mean logically. Like, how did the first person to do it think that something needs to be capitalized?

Posted Jun 30, 2025, 3:22 AM UTC

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