Capitalize SOX costs? 2262



  • Can our company capitalize the cost of implementing SOX (JSOX) rather than show it as an expense on the P_and_L? If so, where is the source for this?



  • Unlikely other than, perhaps, the cost of your compliance system.



  • I agree with Denis. This is just like any other compliance program where most costs will be considered current expense. The only items that I can see as capitalizable are hardware/software purchased to support your efforts.



  • What about the cost of consultants and implementation of the applications?



  • What about the cost of consultants and implementation of the applications?
    This will depend on your software capitalization policy for application implementation. The cost of consultants to review, document and test processes and controls or to enter any of that information into a tracking application would be expensed as incurred.


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