If you pay the municipality for the construction of a road to access your property, what is the correct accounting treatment for this. Do you account for it as an asset or does is qualify as a pre-trade expenses? I'm leaning towards asset, but what do you call it, what is the appropriate method of depreciation and what capital allowance will be available? I can't include this in the cost of the property as it does not seem to add to the value of the property and I am almost certain that an appraiser will not include this in his valuation.
Any help is much appreciated! Thanks