Is software a Fixed assets.
if yes pls provide the supporting also.
Thanks in advance
12 Replies
Harish Bhootra
(Service)
(76 Points)
Replied 31 December 2009
Software is an intangible fixed assets
C.Balaji
(Learner)
(1867 Points)
Replied 02 January 2010
intangible fixed Assets....please see AS 26...
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 02 January 2010
no yaar as per my experience if the concern has paid for software against proper billing , the software should be capitalized under fixed assets.
tom
(x)
(44 Points)
Replied 02 January 2010
As per IT depreciation table " computer including computer software" is allowed 60% depreciation as a fixed asset.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 02 January 2010
computer software for a computer controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated as a fixed asset. The same applies to the operating system of a computer. Where the software is not an integral part of the related hardware, computer software is treated as an intangible asset.
Batul
(Article assistant)
(207 Points)
Replied 02 January 2010
yes software is an intangible fixed asset ..and depreciated @ 60% as per the depreciation table
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 02 January 2010
can u correct me if a company has made pmt for getting prepared software to run videos in lcd screens installed in buses, it be tangible asset or intangible, ie it be capitalized or not.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 02 January 2010
It will be capitalised, be it an intangible asset or a tangible one.
CA Anand Oberoi
(Chartered Accountant)
(296 Points)
Replied 02 January 2010
| Originally posted by : FATEMA | ||
 |
computer software for a computer controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated as a fixed asset. The same applies to the operating system of a computer. Where the software is not an integral part of the related hardware, computer software is treated as an intangible asset. |  |
i completely agree with this reply. if it is treated as fixed asset, it will be charged at 15% pa for depreciation. if it is treated as intangible asset, it will be charged at 60% pa.
Bimal Thacker
(Proprietor)
(762 Points)
Replied 02 January 2010
What about anti virious software for only one year licence? still you all will Capitalised? or treating it as licence agreement and charged to revenue.
CA Anand Oberoi
(Chartered Accountant)
(296 Points)
Replied 02 January 2010
anti virus software with one year licence is a revenue expense, as neither its benefits accrue for more than one year nor it is acquired to help production or generating revenues. so it can't be treated as intangible asset.
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