Whether amount spent for space in server i.e., computer software expenses should be capitalised or it should be treaten as expense in statement of profit and loss
Whether amount spent for space in server i.e., computer software expenses should be capitalised or it should be treaten as expense in statement of profit and loss
Expenses in statement of profit and loss
Amount is 250000 for the expense
Materiality concept is not applicable for accountants. Just because an expense is material doesn't mean that it is capital in nature either. If you paid the money for online server space, then it will be for a definite period. My suggestion is to consider the same as prepaid expense and amortize the same over the period of use.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
