24 March 2008
In the case of software company. They spend 5.00 cr towards salary to IT staff but software could be made in the previous year.Therefore, no sale during the year. Should company claim loss or should paid amount is WIP or Defered Expenses
24 March 2008
The salary expenses should be directly charged to P & L account as the company is a software developing company and the software development is done in the normal course o the business of the company. It does not matter whther the software was fully developed in that year or not. So, charge it off.
24 March 2008
Mr.Mittal,there is no question of WIP as no work is going on right now.The work of developing this particular software has come to an end as you told that software could not be developed. So it should be directly charged to profit & loss account rather.
CAclubindia
