Why this is mistaken
Route the cost to other applicable guidance first. For acquisition costs, test whether the cost is incremental and recoverable. For fulfillment costs, test the specified resource and future performance criteria, then control amortization, impairment, and any practical expedient.
Where to watch
When this mistake may appear
- We would not have spent it without the project.
- The cost supports a customer contract.
Check your work
Your work may contain this mistake if:
- Capitalizes ordinary salary or waste.
- Skips another applicable Topic.
- Has no amortization or impairment control.