capitalisation

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anandkrishna (Querist)
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22 December 2009 I am a manufacturing company.I am using a ERP which i have capitalised in my books.With the help of my current EDP employees im programming a new software for past 3years. This year i have implemented the new software which is programmed by my employees. I have not spcifically incurred any cost towards the manufacture of this software.What is the accounting trearment should i provide for this. Should i capitalise it?If i have to capitalise it at which value should i capitalise it?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 December 2009 Since past three years whatever salaries you paid to your employees; have already been claimed by you as revenue expenditure.

There is no question of capitalization of such expenditure now.