To Capitalise or Not to Capitalise (Expenditure)

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Deciding whether or not to capitalise expenditure can be tricky…   Almost two decades ago a telecom giant in the USA, Worldcom, fraudulently capitalised computer paraphernalia such as cables and memory sticks.  Compare the two double entries: What was the effect of Worldcom’s approach?  They didn’t debit an expense and were able to overstate their profit.  […]