Fixed Assets - EBS (MOSC)

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Accounting india and US capitalization threshold.

edited Jan 28, 2015 10:01AM in Fixed Assets - EBS (MOSC) 3 commentsAnswered

India capitlization threshold is INR5000 and for US it is USD2500.

So for India books we capitlize above INR5000 and this is good for India corp and tax reporting.

For US consolidation we have to fully depreciate assets between INR5001 and USD2500.

With this the asset cost goes up and depreication amount goes up for US consolidation. Instead of this being charged off as an expense it gets charged as depreication (which is also an expense).

But is there a method to charge this as expense in US consolidation instead of as depreciation.

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