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What Is Fixed Asset Capitalization Policy?

By Kristi Waterworth – Updated Jan 1, 2025 at 11:20AM

Key Points

  • Fixed assets are expensed over their expected lifespan, distinct from regular assets expensed immediately.
  • A fixed asset capitalization policy clarifies how assets are treated financially within a company.
  • Such policies aid in maintaining consistent financial reporting and tax filing across years.
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