To detect items that could be capitalizable, regular accounts review is performed.

(1) Represents acquisition-related costs expensed, which were previously capitalizable during 2008.

(4) Represents operating expenses related to our internal development studio in California, which were not allocated to capitalizable projects.

Regarding capital assets, a monthly audit of purchases through acquisition card is done to ensure that capitalizable items are in the inventory system.

Most ordinary business expenses are clearly either expensable or capitalizable, but some expenses could be treated either way, according to the preference of the company.

Directives are required for contingent liabilities (i.e.; restoration of property to its original condition), out of service assets and capitalizable costs.

This implies that the capitalizable costs allocated to date are underestimated on a GAAP and Treasury Board Accounting Standards basis for financial statement purposes.

Dir AMAS e) Issue a directive / procedure regarding capitalizable costs (this recommendation also applies to moveable assets); Previous response 17.

For DIR purposes, ‘equipment’ is considered to be non-disposable and potentially capitalizable. a) Special purpose: major piece of equipment specific to the project requirement and having no residual (other than scrap) value.

As of April 2006, AOD has implemented a process to review repairs and maintenance accounts to detect capitalizable costs which will be approved by the Chief, Financial Policies and Procedures Section.

Examples include timing of recognition of cost recovery deductions (e.g., depreciation), current expensing of otherwise capitalizable costs of intangibles, and rules related to costs that should be treated as part of cost of goods not yet sold.