⌘K
Initial Direct Costs
Initial direct costs are incremental costs directly attributable to negotiating and arranging the lease.
What Qualifies
Costs that can be capitalised:
FRS 102 Reference: FRS 102.20.14
Legal Fees
Solicitor fees for lease negotiation.
Broker Commissions
Agent fees for securing the lease.
Survey Costs
Building surveys and valuations.
What Doesn't Qualify
General overheads, failed negotiations, and internal legal costs are NOT capitalised.