soetusmaksumus

Soetusmaksumus is an Estonian accounting term referring to the initial cost of acquiring or constructing an asset, recognized when the asset is brought into use. It represents the cost basis for subsequent depreciation or amortization and may also be called the acquisition or initial value of the asset.

The soetusmaksumus typically includes all costs necessary to obtain the asset and place it in working condition. This can encompass the purchase price, non-recoverable taxes, import duties, transportation and handling, installation and commissioning, testing, and other directly attributable costs. If the entity finances the asset with borrowing, capitalizable borrowing costs may also be included. In many regimes, value-added tax that is recoverable is excluded from the soetusmaksumus, while non-recoverable taxes are included.

What is included can vary by jurisdiction and accounting policy. For construction in progress, the soetusmaksumus accumulates all costs until the asset is ready for use. Ongoing or routine maintenance costs are generally expensed as incurred and are not part of the initial cost.

The soetusmaksumus serves as the base for depreciation or amortization over the asset’s useful life. It may be reviewed for impairment if circumstances suggest the asset’s recoverable amount is below its carrying value.

In practice, the term is used in Estonian accounting to describe the initial recognized value of fixed assets and some long-term construction projects, aligning with the broader concept of historical cost used in financial reporting.