22 October 2008
if we bought tally software for 38000, can i account it as asset in books of accounts or as expenditure . pls forward ur advice to uvbr@rediffmail.com
22 October 2008
Where the expenditure incurred on the software is likely to give an enduring benefit over a period of time, then the software has to be treated as an asset only.
22 October 2008
A software is considered as an asset only if you get a LICENCE for the same - to USE IT AND - TO SELL IT TO SOME OTHER PARTY for some consideration.
If both of the conditions are not fulfilled simultaneously then the expenditure incurred on the software is considered as expenditure
For Example: The Finacle software developed/purchased by UCO Bank can be considered by the Bank as an asset because they withhold the right to sell that software as well.
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