Our parent company is in China, listed in HongKong, has reporting requirement. Subsidiaries are in the U.S., Netherland, Korea and Japan - these are non public companies, no reporting requirement. All immaterial to parent company in size (from both BS and P&L perspectives) The parent company uses RMB 3000 (which is about USD400) as their capex threshold, and is trying to ask all overseas subsidiaries to adopt the same as "they need one consistent capex threshold throughout enterprise" - Is this true? If so, the U.S. and Netherland offices will have to capitalize a whole lot more expenditures than before, and it is way lower than market average. Please suggest, what are some practices that you have seen in global companies when evaluating capex threshold for foreign subs? Thank you!
