Software Accounting

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Hi,

Can anyone pls provide better clarification wrt booking of  Software development cost, is this should be treated as Capital Expenditure or operating Expenses. This is general software developed by third party based on our requirements, in this case can I say that AS 26 is applicable to this exp & not AS 10.

 

 

Replies (2)
Surely it a Capital expenditure, and As 26 is to applied, since Software fall under category of Intangible Asset

software is an intangible asset and is covered under AS 26....hence it should be dealt with as per AS 26


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