Comment by jncfhnb

Comment by jncfhnb 6 days ago

1 reply

Salary for building assets generally are capitalizable. Construction companies have a special carve out because they typically are hired to build the assets for someone else and are paid for the completion of the construction work.

A factory worker building a product to be sold is capitalized into inventory

procaryote 2 days ago

The product can be capitalised into inventory. The factory worker's salary is just a cost.

The key thing here is that while you generally are expected to and allowed to consider a produced good an asset, it's not assumed that paying someone salary translates immediately into an asset... unless it's software under this new rule for some reason