Snoopy (Proprietor) (36 Points)
11 June 2014Salary paid to software professionals for in-house software development over last 3 years fully expenditurised, as there was no tangible asset against the same.
In the current year, when the software is fully operational, can that be written back, to create an intangible asset (Software), which is to be depreciated over a period of 10 years?
CA Saroj Kumar
(Keen to learn something new every moments)
(2588 Points)
Replied 11 June 2014
No mam ..during the reasearch activity expenses amount should be charged with profit and loss account and durring the period of development activity the amount of expenditure should be capitalised as Intangible assets.
Its not question of get back the expenses to Intangible assets.
Once it chrged to P & L A/c it can't be get back.
ujjal phukan
(article)
(40 Points)
Replied 14 June 2014
CAclubindia
