Capitalisation of Fees for REFCUS Grant Spend

Can I ask whether anyone capitalises internal fees for the administration of capital grants eg to businesses for improvements on their buildings to regenerate an area or for Disabled Facilities Grants.

Under the capital guidance, employees’ activities can be capitalised where they contribute directly to bringing an asset "to a location and into a condition so that it is capable of operating as intended", but I can't see how this holds true where there is no enhancement of an asset on the authority's balance sheet.

I would welcome any views?
Parents
  • If the auditors are worrying about capitalised admin fees in the context of DFG spend, they clearly don't understand the materiality concept. The argument that they are bringing the asset into use is a valid one in my view.

Reply
  • If the auditors are worrying about capitalised admin fees in the context of DFG spend, they clearly don't understand the materiality concept. The argument that they are bringing the asset into use is a valid one in my view.

Children
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