21 November 2011
Dear All, We pays certain amount towards software for a particular year for ex. Rs. 10K for Tally subscription for year, Rs. 50k towards visual impex renewal for year.
I am of the view that as these amount we are paying for a particular year so it shoul be W/o & not capitalised.
Pls explain as per Accounting Standard correct treatment if i my view is not correct.
21 November 2011
Yes, these should be written off over the period of subscription. These should not be capitalised(excepting the prepaid expenses portion running to next FY, to be expensed off in next FY).
CAclubindia
