Expenses versus Assets

SSLL · ‎May 28, 2020

Hello! I am the new treasurer for my little league and learning how to use QB - we purchase equipment that is used from year to year and some that gets replaced at the end of the season (baseballs, etc.) but we have equipment that gets used from year to year (pitching machines, helmets, bats) and snack bar equipment. Should these be shown on the balance sheet and an expense? How would I categorize these? Or should they just be an expense? Also we perform regular maintenance and repairs to the improvements (dirt, fence work etc) should these costs be shown as fixtures/improvements?

Thank you!

SisiResti · ‎May 29, 2020

hello SSLL!

here I'm trying to help you :)

for the equipment, we need to determine if the usage / economical value of the asset is longer than 1 year.

if not, you can record it as an expense right away.

however please refer to your country's accounting standard to determine if the asset can be recorded to be fixed asset or expense: https://www.ifrs.org/issued-standards/list-of-standards/ias-16-property-plant-and-equipment/

you can refer also to this article if you want to register fixed asset on the QB : https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/entering-transaction-for-fi...

I hope this helps! ^^

Rustler · ‎May 29, 2020

@SSLL

Maintenance on any asset is an expense, so no it is not fixture or improvements. Unless that improvement extends the useful life of the asset significantly. A new set of bags is an expense, a new layer of sod is an improvement, but fill dirt is an expense.

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