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Capitalisation of Computer software/website development

Rajeysh (Article) (36 Points)

07 September 2007

Is cost of website development and computer software to be capitalised for non IT company

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7 Replies

siddh (Article (Final Result waited)) (391 Points)
Replied 07 September 2007

as per my viwes it should not be capitalised

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(Guest)

Plz provide me brief reason why it should not be capitalized

Amit (ca student) (112 Points)
Replied 08 September 2007

Yes, It should be capitalised.

Amit Sureka (Finance Manager-India) (251 Points)
Replied 19 September 2007

This need to be treated as revenue expenditure as recurring exp to keep the web site develop on day to day basis.

Balaji (student) (51 Points)
Replied 20 September 2007

It should be capitalised IF following are fulfilled : 1. Future Economic Beneifit is there. 2. Cost is measurable. 3. Control over the asset. 4. Mgmt have intention to use it or sell it. 5. It activity is technically feasible. Hope all conditions are satisfied so u can capitalise.