my client developped a website during year 2011-12. as his main revenue generation is wholy from this website, he will start earning revenue from the middle of 2012-13. my query is whether said website development cost is a revenue or capital in nature in 2011-12. if it is a capital , under which it should be grouped i.e. software or intangible assets.
27 May 2012
AS PER AS 26, SOFTWARE DEVELOPMENT COST SHOULD BE CAPITALISD IF THERE IS SURETY THAT OF FUTURE ECONOMIC BENEFIT. ACCORDING TO YOU, REVENUE WILL BE GENERATED FROM MIDDLE OF 2012-13, THE DEVELOPMENT COST SHOLD BE CAPITALISED IN 2011-12, AND SHOULD BE CLASSIFIES AS INTANGIBLE ASSET
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