Purchase of ERP software

IFRS 124 views 3 replies

Hi, Appreciate if someone could help me on this.

 

Lets say a client has ordered a specialized software costing $1,500. As of the year end, software has not been delivered yet and client has made an advance payment of $1,000.


The only entry made in regard of this transaction is recording of advance payment.

 

My question is whether we need to accrue the remaining amount of $500 in the books at the year end?. 

 

Thank you.

Replies (3)
Without suplies how can You account...

Ah my mistake. I understand. Thank you.

You have to account for the entire expenses and debit
software dr.
on successful implementation you can capitalize...


CCI Pro

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