As-26 intangible assets
This query is : Resolved
Prachi Agarwal
(Querist)
06 May 2013
I wish to know the treatment of an ERP Software installed during the current year.
Should it be fully amortized in the current year itself or should be amortized as per the remaining useful life of the Asset.
Should it be fully amortized in the current year itself or should be amortized as per the remaining useful life of the Asset.
07 May 2013
Excerpts from AS 26 - Intangible assets:
13. The depreciable amount of a software should be allocated on a systematic basis over the best estimate of its useful life. The amortisation should commence when the software is available for use.
14. As per this Statement, there is a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. However, given the history of rapid changes in technology, computer software is susceptible to technological obsolescence.
Therefore, it is likely that useful life of the software will be much shorter, say
3 to 5 years.
13. The depreciable amount of a software should be allocated on a systematic basis over the best estimate of its useful life. The amortisation should commence when the software is available for use.
14. As per this Statement, there is a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. However, given the history of rapid changes in technology, computer software is susceptible to technological obsolescence.
Therefore, it is likely that useful life of the software will be much shorter, say
3 to 5 years.
Message likes :
1 times
Prachi Agarwal
(Querist)
27 November 2013
Thanks Sir..
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
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Gift to nri relatives residing in usa
- Form 144 TDS Return Validation Error – Mandatory Fields
- TDS- 2026-27 Q1 Correction
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Ito add credit side of bank
- Employee secondment
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- 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
- Tally: Imported bank entries do not show up in manual reconciliation
- 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?
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
