Software development cost
This query is : Resolved
10 October 2016
Respected Expects,
I need some clarity about treatment of software development cost-Held for sale.
Development period is 2015-17
whether development cost to be charged to P &L Account or to be capitalised and amortized over a period of time..Our entity is a pvt Ltd Company
Do this needful favour..Thank you.
I need some clarity about treatment of software development cost-Held for sale.
Development period is 2015-17
whether development cost to be charged to P &L Account or to be capitalised and amortized over a period of time..Our entity is a pvt Ltd Company
Do this needful favour..Thank you.
13 October 2016
your query is not clear. If its a software going to be sold then the cost needs to be kept in WIP until the product is finsihed. Once finsihed entire amount will go to the P&L and sale value will be credited whenever sold.
on the other hand if its for your own use, you will have to amortize under the head Depreciation as per rate available in schedule.
on the other hand if its for your own use, you will have to amortize under the head Depreciation as per rate available in schedule.
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