Applicability of as -2

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 June 2014 A pvt ltd company incorporated in F Y 2013-14 developing a type of intangible assets for sale in the ordinary course of business. Its a type of software used in a particular industry. Once it is developed it can be sold for any number of times like tally, winman etc. only renewal or updation is required.In the FY 2013-14 the company is in the process of developing the particular software. The sale comes only on next F Y.

My question is what is the treatment of cost incurred for developing the software up to 31-03-2014 in the financial statements as on 31-03-2014, whether it is treated as Work in process or not
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Rupesh Jain

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Rupesh Jain (Expert)
07 June 2014 you can show as work in progess as closing stock.
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
07 June 2014 refer as 26 which says that expp must be wirrten off to profit and loss a/c
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