banner_ad

Capitalization of intangible asset

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
13 August 2015 As per AS-26, intangible asset can be capitalized only if
1 it results in future eco benefit, and
2 useful life can be estimated.

So should an accounting software, like tally, purchased be capitalized?
Profile Image

CA Ayush Agarwal

Profile Image

CA Ayush Agarwal (Expert)
13 August 2015 Nops, it should not be capitalised, as without software the computer will not loose its identity and could not be used for work.
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
13 August 2015 Tally software can be capitalized as per AS 26. It has future economic benefit and useful life. Capitalize and depreciate it for 5 years.
Profile Image

CA Ayush Agarwal

Profile Image

CA Ayush Agarwal (Expert)
17 August 2015 Although I have advised many times to capitalise this, but recetly there was a case where capitalisatiion has been disallowed.

I would suggest you to take decision based on the amount involved.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details