Accounting

What the accounting boundary does to your architecture

Capitalisation rewards crossing from exploration into development, so the boundary quietly rewards early commitment to a design. An incentive on technical decisions nobody describes as technical.

5 min read

When does a prototype become a capitalisable asset?

IFRS and US GAAP draw the line differently, neither draws it at the word prototype, and the US test is changing. Costs expensed before the criteria are met are not reinstated.

5 min read