GAP accounting standard allows you to come up with company policy. Where policy can say any item under $1000 will be expense. After that it does not matter how many items you buy under that price. I am not accountant, you may want to check with accountant who are familiar with GAP standards. WISPA has vendor member kiesling, who can guide you in such matter.
Tushar > On Dec 12, 2015, at 9:58 AM, Simon Westlake <simon@sonar.software> wrote: > > Can you get away with that on a big purchase though? Or is it because you are > buying it in small quantities? > > E.g. if I buy 100 million dollars worth of CPE, I can't imagine I'd get away > with expensing it. > >> On 12/11/2015 11:47 PM, Ken Hohhof wrote: >> I have an asset item called "equipment" and an expense item called "non >> capital equipment". If it costs less than $500 each or is likely to be >> gone, retired or used up before it can be depreciated, it gets expensed not >> depreciated. I am reluctant to capitalize CPE. Routers, servers, APs, >> backhauls get capitalized if they cost >$500. My accountant has not >> complained. >> >> If I purchase something other than equipment, like a vehicle or a building, >> it goes in its own asset category and my accountant decides what >> depreciation schedule is appropriate. I suppose some big piece of software >> might get depreciated, I wouldn't know. >> >> Not sure we are handling financed equipment properly. Typically I have 3 >> year $1 buyout leases, I don't own it for 3 years, and then it appears to be >> worth $1. With a fair market value buyout, I guess you could take that and >> depreciate it, but I would probably argue with my accountant about a 5 year >> depreciation schedule on equipment that is already 3 years old. >> >> Other special categories would be stuff like "goodwill" and intellectual >> property. I guess when you pay $1000 per sub for a WISP whose hard asset >> have a book value of $1.58, the rest is goodwill and gets depreciated. >> >> Then there's Section 179. >> >> >> -----Original Message----- From: Simon Westlake >> Sent: Friday, December 11, 2015 10:16 PM >> To: af@afmug.com >> Subject: Re: [AFMUG] Calculating depreciation >> >> How are you defining 'like' assets? Would you group together things like >> routers and access points? Or are you getting more specific than that? >> >>> On 12/11/2015 10:14 PM, Chuck McCown wrote: >>> There are lots of depreciation methods. Straight line, accelerated, mass >>> depreciation. >>> When you acquire assets over time it it is a pain in the ass to have a >>> schedule for each item. >>> Mass allows you to throw all like assets into a common pot and take a >>> percentage of the pot as depreciation expense each year. >>> That way you don't have to track when they enter. >>> >>> >>> >>> -----Original Message----- From: Simon Westlake >>> Sent: Friday, December 11, 2015 8:54 PM >>> To: af@afmug.com ; memb...@wispa.org >>> Subject: [AFMUG] Calculating depreciation >>> >>> When you depreciate your fixed assets, what method do you use to >>> calculate it? > > -- > Simon Westlake > Skype: Simon_Sonar > Email: simon@sonar.software > Phone: (702) 447-1247 > --------------------------- > Sonar Software Inc > The next generation of ISP billing and OSS > https://sonar.software >
