All Collections
Understanding our categories
Categories explained: Capitalised Costs
Categories explained: Capitalised Costs
Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

Certain situations will arise where you are not allowed to deduct some expenses straight away in your accounts. For example this will occur when you do a fund raise and pay legal fees for preparing the shareholder documentation. These legal fees should be capitalised and will sit as a negative equity category.

What's included

Legal fees related to a fund raise.

IAS 32.37 requires that: "The costs of an equity transaction (raising of funds) are accounted for as a deduction from equity (net of any related income tax benefit)"

What's not included

Other capitalised assets should be allocated to their respective fixed asset category.

Did this answer your question?