Capital work in progress (Software Development)
This query is : Resolved
09 November 2010
Dear All,
A company is developing a software (for own use) which is in progress as at balance sheet date.
Can any one explain me in brief how to identify the value of such software for capitalisation. What are the points/documents which need to be verified.
A company is developing a software (for own use) which is in progress as at balance sheet date.
Can any one explain me in brief how to identify the value of such software for capitalisation. What are the points/documents which need to be verified.
27 November 2010
All expenses that is directly / indirectly related to development should be capitalised.
The major component will be the salary of the programmers, their incidental expenses like accomodation, etc
You may also have purchased some licensed software (platforms, back end, etc) for this purpose and that also has to be capitalised.
The major component will be the salary of the programmers, their incidental expenses like accomodation, etc
You may also have purchased some licensed software (platforms, back end, etc) for this purpose and that also has to be capitalised.
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