Capitalize Moving Costs?

Question

Can you capitalize the cost of moving to a new leased office according to GAAP?

Answer 1

No, according to IAS 16 Property Plant & Equipment. Para 19 is excerpted below:

19. Examples of costs that are not costs of an item of property, plant and equipment are:
(a) costs of opening a new facility;
(b) costs of introducing a new product or service (including costs of advertising and promotional activities);
(c) costs of conducting business in a new location or with a new class of customer (including costs of staff training); and
(d) administration and other general overhead costs.

So the costs of moving to a new location should not be capitalized. That makes sense as the move has not improved the ability of any asset to generate revenue. I would expense off the moving expenses.