When assets are acquired, they should be recorded as fixed assets if they meet the following two criteria: Exceeds the corporate capitalization limit. The capitalization limit is the amount of expenditure below which an item is recorded as an expense, rather than an asset. For example, if the. Learn how to classify network equipment, choose between expensing and capitalizing, and use Section 179 or bonus depreciation to reduce your tax bill. Network equipment belongs on your balance sheet as a long-term asset, with its cost spread across future periods through depreciation rather than. Majed leads CPCON's operations in the Middle East, specializing in fixed asset management, depreciation strategies, and financial reporting compliance for organizations across the region. In previous years, Budget Units reported.