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Software Assets or Expenses

Others 3574 views 3 replies
Suppose we purchase any Software for company.
So Is it Assets or Expenses for company??
Replies (3)
Software is a intangible assets of a company, if amount is material for Company and have a useful life more than 1 year, you can Capitalised that and can claim depreciation.

if amount is not material, than you can expensesd out....

It depends upon what kind of software it is , if it is  a low cost accounting software, better to expense it off. 

 

All other heavy duty softwares needs to be capitalised as intangible asset in books of accounts

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