How to calculate an intangible value of a software product

Quick Summary
This discussion explores how to calculate the intangible value of software developed in-house, particularly by a sole founder. While initial thoughts suggested valuing time spent, the consensus leans towards capitalising direct development costs like salaries, legal fees, and amortisation of existing software. For founders not taking a salary, methods like adjusted market assessment or allocating overheads using ABC costing are suggested. The key is to capitalise costs only when they contribute to future economic benefits, distinguishing between initial development and ongoing production.

But then the accurate intangible value of the software product cannot be calculated.

Accounting principles are simple. They are developed to measure everything accurately. And there is no measurement of cost beyond that. What ever way is convinient, people follow relevant principles. Example, depreciation. SLM method is slower than diminishing balance method. Yet companies choose that because their tax planning is not in hurry to claim all depreciation immediately. Similarly, if you include your salry, you will get a tax benefit through amortisation. There is no intagible value of an asset, ACCOUNTANTS ASSIGN A VALUE TO THEM. 

For further queries on taxes, use the tax section here. Many accountants know about taxes for startups.

Hello, I want to learn a little about API integration, where can I read about it because I myself can not find anything

Although it is very important eg. Toad application in Oracle integrated with databases, you don't have to learn anything not unless there is a good job demand. 

@ kokker There are many forms of API integration. Depending upon what you are integrating with you can normally get the steps from the platform with which you are integrating.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details