Hai all!
Help me out in this issue.
Should the SAP s/w cost be classified as Intangible asset (ITA)as per AS 26?
If yes, will the cost of the server form part of the cost of the ITA?
Please come out with your views......
5 Replies
Shwetha
(CA Final)
(67 Points)
Replied 22 July 2010
thanks Harpreet...
can u tell whether server cost shd be taken in cost?
Rohit Chandak
(Financial Service)
(314 Points)
Replied 22 July 2010
An intangible asset is an identifiable non-monetary asset, without
physical substance, held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes.
An asset is a resource:
(a) controlled by an enterprise as a result of past events; and
(b) from which future economic benefits are expected to flow to
the enterprise.
Hence the SAP software is identifiable,non monetary asset adn from this the future benefits are expected to flow to the enterprise..Hence this is a Intangible Asset.
Shwetha
(CA Final)
(67 Points)
Replied 22 July 2010
the server is bought only for the purpose of SAP implementation....it is directly related to the SAP.
so can it be taken as part of ITA -SAPcost?
Recent Topics
- Gamified study break ideas for CA Final prep?
- IT TDS for Dr.Kanagalakshmi
- Running of HUF
- Potential consequence of consolidated TDS entries?
- Recovery of salary by employer for short notice pe
- Enquiry for any CA Firm for Sale in Bangalore
- AIS app is not working.
- RCM applicability of purchase of Railings Grills &
- GST invoice heading
- Wdv for old truck sale
Related Threads
Trending Online Classes
-
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools
CA Deepak Gupta15 July 2025
CAclubindia
