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Accounting standard - 26

CA. VIKASH GOEL (EMPLOYED) (33 Points)

14 September 2011

Dear Friends,

I want to know that whether "Accounting Package & Expenditure on Site Development" covered by AS-26 Accounting For Intangible Assets and whatwill be treatment in the books of accounts.

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2 Replies

SANJEEV (CA Final (B.COM)) (189 Points)
Replied 14 September 2011

Yes (Expenditure on Site Development) the same has been cover under AS 26 and the Devlopment expeniture can be capitalised..!!

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Bhaskar Unnikrishnan CPA CMA (Accounts / Administration) (414 Points)
Replied 15 September 2011

Expenditure on computer software is covered under Indian Accounting Standard 26 (Presume site development cost doesnot means physical site development such as demolition of existing building etc.) which includes development of prototype, testing etc. All expenses from Intial development to bringing the software to operation should be capitalised, but except expenses like Training and re-organising, preliminary expenses such as legal and secretarial costs, expenditure to open new facility or expenditure, Research and Development expenses etc.