Capitalisation of Internally developed software

Dear MRM,

1)UR FIRST QUERY RELATES WITH AS -26, INTANGIBLE ASSETS, IF ALL THE CONDITIONS PRESCRIBED UNDER AS -26 ARE SATISFIED THEN THE EXP. ON DEVELOPMENT OF SOFTWARE CAN BE CAPITALIZED FOR A PERIOD MENTIONED IN THE AS -26...DEPRECIATION AT SLM WILL BE ALLOWED..

2) YES A COMPANY CAN OBTAIN COPYRIGHT FOR INTERNALLY DEVELOPED SOFTWARES

But in AS 26 it has been provided that Past year's expenses cannot be capitalised???

Pls Clarify.

U R RITE BROTHER,

PAST EXPENSES WHICH HAVE BEEN CHARGED TO REVENUE OR PROFIT/ LOSS  A/C CANNOT BE CAPITALIZED...

EG:- DEVELOPMENT STARTED IN 2006-07 AND COMPLETED IN 2007-08,

NOW EXPENSES OF 2006-07, ELIGILBE TO BE CAPITALIZED AS PER AS-26 SHOULD BE CARRIED IN BOOKS AS CAPITAL WORK IN PROGRESS INSTEAD OF CHARGING IT TO PROFIT/LOSS A/C 

IN CASE ERRORNEOUSLY ELIGIBLE EXPENSES HAVE BEEN CHARGED TO REVENUE IN 2006-07, STILL RECTIFICATION CAN BE MADE IN 2007-08 BY FOLLOWING THE PROCEDURE PRESCRIBED UNDER AS-5 "PRIOR PERIOD ITEMS"

THE STATEMENT U HAVE MENTIONED SIMPLY MEANS "INELIGIBLE EXPENSES"