How to capitalise intangible assets (softwares created internally)

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I want to know how to carry out the capitalization of expenses incurred towards creation of an intangible asset being software. Also, would be helpful if someone could throw a light on how to account for / capitalize such software, patented as well as non patented. Further, reference of relevant Accounting Standard to be referred will be helpful. And where can I find the latest AS copy.

 

Second question is what can be the fees which can be charged by professional for carrying out the above exercise.

Replies (1)

1. All the costs associated to bring this intangible assets to its useful life with an intention to sell or use it to reap economic benefits are capitalised. Search google for Ind As Intangible Assets 38.

2. Training costs are expensed, but professional fees and salaries can be capitalised if their work is attributed towards the construction of the intangible asset.

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