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Treatment of perpetual license expenses

Suresh S (Finance Team)     21 February 2020

Suresh S
Finance Team 
 2 points

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Hi All.  Earlier perpetual software licenses were treated as operational expenses and their expenses were amortized over lifetime of the license ( Generally 4 years ). 
But this financial year it is treated as capital expense and the expenses are capitalized and depreciation is being booked. 
Is there's any change in Accounting standard because of which it is being done. 

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