Depreciating ISO Registration Costs

[Marc]

Subject: Re: Q: Depreciating ISO Registration Costs /Emmer/Kozenko
Date: Mon, 13 Sep 1999 13:51:29 -0600
From: ISO Standards Discussion

From: Write9000
Subject: Re: Q: Depreciating ISO Registration Costs /Emmer/Kozenko

> In a past issue of Quality Systems Update there was reference to depreciating
> the ISO 9000 registration costs over time. Does anyone have more information
> or could someone suggest where I might go to find this information?

For federal government contractors, the DCAA allows ISO costs to be specially treated as "Research and Development;" this treatment can be structured so that it is allowed to remain as the QMS maintains its "continuous improvement" status. Check with your accounting guru (CFO, CPA, whatever you call him/her) and the "treatment" should be easy to find.

David Kozenko

First,Hi,Marc and all the rest of you Wizards,contributors, etc. Have been following the Cove for over a year and have found tons of great information. Decided it was time I got into the fray. I'm the ISO "guru" for a commercial electronics company. Been at this game(ISO)for *$&# years,having certified three companies in the past and now this one in June,'99. It was a real pain, as the company is multi-site and spread across the US(we just aquired another company in the UK that I will have to bring into the fold). 'nuff said.

Anyway, I have two questions:

1) In reading the post of 28 Sept.concerning depreciating ISO costs, have checked with CFO,company attorney and( G-- forbid)the Infernal Rev. Service.None of these have any information on the "treatment" of ISO costs(my CFO says if I find the method of using costs as an R.and D.expense,I'll be Hero of the Year) Has ANYONE any information on this subject? I really like being a Hero!

2) Has anyone any information on a standard(or "proposed"standard)labeled ISO 19011? I have heard the it may be an integration of 9000 and 14000. Would appreciate any info.E-mails welcome.

Thanks again,Marc and everyone.

[Marc]

I haven't heard anything else about depreciating the costs. I posted this as it is something that comes up from time to time. You might want to e-mail the person who posted the message to the ISO Standards Discussion listserve.

I would appreciate your stopping by here and posting any information you find out.

[barb butrym]

I just had some inquiries from a client who was successfully registered last march...their IRS guy was investigating their "lack of costs", how they assigned costs, and how depreciation of costs over time should apply. They had to justify all sorts of things, made me think abit about how I keep my records of implementation. That was the first I had ever been involved, and that was in October/early November...maybe the world is now awakening to all this, with all the funding around. My guys were saying it cost much less than the IRS guys wanted to allow and further depreciate, as they didn't choose to include internal costs of employees time. So to them its a 1 shot deal without depreciation....It was a legnthy investigation, and all were satisfied in the end, but I wasn't around after I gave my small input. so I am not sure of the out come details. Their QA guy is registered here...maybe he will feel free to jump in....

[This message has been edited by barb butrym (edited 10 December 1999).]

[Marc]

The tax deduction issue is also addressed in the following thread: IRS Ruling - Deduction Of ISO 9001 and TS 16949 Implementation Costs

[Marc]

Has anyone had any feedback on this issue lately?