I have a quick question on the capitalisation of fixed assets.
I know that if the cost of an item for example a computer is less than R7000, it can be expensed directly to the income statement.
Now I have a problem - What if a truck is bought in seperate parts - all below R 7000 - and then put together in the workshop. Total cost of all parts = R 150 000. Do I capitalise the R 150 000, or do I expense each part to the income statement?