"How do you account for a project under construction" Now we are...

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Hasty78

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16/02/19

23:59

Post #: 37460765
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Originally posted by Senseightynine: ↑

didn't realise gomspace do in-house development and testing for the software for SAS too.

the intangible costs are all for internal development costs by staff, in-house testing of software and launch systems and proprietary technology.

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment and inventory

How do you account for a project under construction?
I will assume that the project under construction is a major rebuilding of equipment or an addition to a building. The amounts spent on these projects would be debited to a long term asset account such as Construction Work in Progress. This account is often reported as the last line within the balance sheet classification Property, Plant and Equipment.There will be no depreciation until the project is completed and the asset is placed into service. When the completed asset is placed into service, the project's cost will be removed from the account Construction Work in Progress and will be debited to the appropriate plant asset account.

clearly you see that the above paragraph correlates with the screenshot above - no depreciation as its still under 'construction'

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"How do you account for a project under construction"

Now we are back to Non current assets

Noncurrent assets are company long-term investments where the full value will not be realized within the accounting year. Examples of noncurrent assets include investments in other companies, intellectual property (e.g. patents), and property, plant and equipment. Noncurrent assets appear on a company's balance sheet

SAS Price at posting: 5.4¢ Sentiment: Buy Disclosure: Held
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