Hankintamenot

Hankintamenot, or acquisition costs, are the costs incurred to acquire an asset and bring it to a usable condition. In Finnish accounting practice they are typically capitalized as part of the asset’s cost rather than expensed immediately, and they form the basis for depreciation over the asset’s useful life.

The scope of hankintamenot covers not only the purchase price but all costs necessary to obtain the asset and prepare it for use. This includes transportation, handling, insurance during transit, installation, testing, and any fees or professional services directly attributable to bringing the asset to its intended condition and location. For inventories, acquisition costs similarly include purchase price and the costs needed to bring the goods to their present location and condition.

Financing costs are generally not included in hankintamenot, except for those that are directly attributable to bringing the asset to its current state and location, in line with applicable accounting standards, such as borrowing costs capitalized on qualifying assets.

Accounting treatment involves recognizing hankintamenot as part of the asset’s book value and depreciating or amortizing the cost over the asset’s useful life. If indicators of impairment arise, the asset may be tested for impairment, potentially reducing its carrying amount.

In financial statements, hankintamenot appear within the asset section (for PPE or intangible assets) and are not expensed through the income statement at the time of acquisition. Tax treatment typically follows depreciation or amortization schedules rather than immediate deduction of the full cost.