What is Capitalization Threshold?

What is Capitalization Threshold?

What does it mean by Capitalization Threshold?

Capitalization Threshold refers to the monetary value at which an entity elects to capitalize tangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.

COA Circular No. 2022-004 dated May 31, 2022

How much is the current Capitalization Threshold of the Philippine Government?

The latest capitalization threshold of the Philippine government is at ₱50,000.00 pursuant to Section 23 of the General Provisions of the FY 2022 General Appropriations Act (GAA), subject to the guidelines issued by the Commission on Audit (COA).

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