Capitilisation of fixed asset
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 April 2013
A COMPANY IS PURCHASE ON SOFTWARE FOR RS 13500 . SO COMPANY CAPITALIZED ON SOFTWARE AS A FIXED ASSET OR NOT IF COMPANY IS CAPITALIZED THEN THE RATE OF DEPRECIATION OR IF NOT CAPITALIZED THEN WRITTEN OFF IN P & L SO PLEASE ADVICE.
24 April 2013
as per AS 26, software is intangible asset.
book them as asset.
such assets are never depreciated but Amortized.
amortization period in case of software is 3-5 years, normally it is 10 years for intangible assets. para-63
amortisation method--
in proportion of future benefits
or
SLM method. (simple as in case of DEP)
book them as asset.
such assets are never depreciated but Amortized.
amortization period in case of software is 3-5 years, normally it is 10 years for intangible assets. para-63
amortisation method--
in proportion of future benefits
or
SLM method. (simple as in case of DEP)
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