Accounting treatment for antivirus

vishal singhal (emp) (55 Points)

03 February 2012  

 

Dear Friends ,

 

Company purchased Antivirous Software having the validity period of 3 years. Now what willbe the possible treatment - 

1) Capitalize under the head softwarre and claim 100% Depreciation OR

2) Fully expenses because no expenses can be deferred OR

3) Book 1/3 in the current year and balance 2/3 will be prepaid expenseswhich will be writeoff in the next 2 year 

 

Please answer alongwith any reference of Accouting Standard or Act if any ???

 

Thanks & Regards

Vishal Singhal