accounting
This query is : Resolved
09 February 2010
If a company is involved in designing work then computers become the asset on which the designing is done. So should it be shown under computer A/c or it should be shown as Plant & Machinery ?
Further the design software used is more expensive than the computer itself. So how do we account for the same? Do we treat it as part of computer or do we show it as software only?
Further the software has a subscription period of 1 year after which it may have to be subscribed again. How to account for the same?
Further the design software used is more expensive than the computer itself. So how do we account for the same? Do we treat it as part of computer or do we show it as software only?
Further the software has a subscription period of 1 year after which it may have to be subscribed again. How to account for the same?
09 February 2010
My view,
Even Computer used for desiging it is computer only, the definition will not change as P&M
Software licence can be capitalisaed separtly
Intial Software instalation can be capitalised and subsription renewal can be booked as revenue expenditure
Even Computer used for desiging it is computer only, the definition will not change as P&M
Software licence can be capitalisaed separtly
Intial Software instalation can be capitalised and subsription renewal can be booked as revenue expenditure
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