Whether amount spent for space in server i.e., computer software expenses should be capitalised or it should be treaten as expense in statement of profit and loss
Surya Teja (Aricle assistant) (26 Points)
10 March 2017Whether amount spent for space in server i.e., computer software expenses should be capitalised or it should be treaten as expense in statement of profit and loss
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(162032 Points)
Replied 10 March 2017
Expenses in statement of profit and loss
K V L NARASIMHA SWAMY
(Senior Lecturer )
(55 Points)
Replied 10 March 2017
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 24 April 2017
Materiality concept is not applicable for accountants. Just because an expense is material doesn't mean that it is capital in nature either. If you paid the money for online server space, then it will be for a definite period. My suggestion is to consider the same as prepaid expense and amortize the same over the period of use.
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