Accounting treatment for UAT expenses incurred on new softwa
This query is : Resolved
harpreet singh
(Querist)
05 November 2009
We have developed the new softawre by hiring some resources. But before putting the software live, we engage some external agency to do the UAT. So that it can be ensured that it is free from any deficiencies.
Now my query is that whether we should capitalised the UAT expenses incured or expenses out.
Now my query is that whether we should capitalised the UAT expenses incured or expenses out.
CA.Ramkrishna
(Expert)
07 November 2009
Yes. The UAT expenses has to be capitalised.
any expenses incurred in relation to assets to bring it to working condition till it is put to use has to be capitalised. (Refer AS-6)
any expenses incurred in relation to assets to bring it to working condition till it is put to use has to be capitalised. (Refer AS-6)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
