Hankintamenon

Hankintameno, also referred to as hankintamenon in its genitive form, is the acquisition cost of an asset for accounting purposes. It represents the total amount used as the basis for depreciation and impairment testing and reflects the costs necessary to bring the asset to its usable condition and location.

Elements commonly included in hankintameno are the purchase price, transportation and handling costs, installation and commissioning costs, testing, and any legal or registration fees paid to acquire the asset. Import duties and other non-refundable purchase taxes may be included when they form part of obtaining the asset. In most cases, value-added tax (VAT) is not included in hankintameno if the entity can recover the tax.

Costs that are not included are financing costs such as interest, general overhead not directly tied to the asset, and ongoing service contracts after the asset is placed in use, unless the entity’s accounting policy allows capitalizing such costs.

Example: a machine purchased for 50,000, with transport 2,000, installation 3,000, and testing 1,000, yields a hankintameno of 56,000. If VAT is recoverable, it is excluded from the hankintameno; the 56,000 is then depreciated over the asset’s useful life.

In Finnish accounting standards, hankintameno forms the basis for depreciation and asset valuation on the balance sheet. It may differ from tax depreciation bases depending on applicable tax rules.