Hai all!
Help me out in this issue.
Should the SAP s/w cost be classified as Intangible asset (ITA)as per AS 26?
If yes, will the cost of the server form part of the cost of the ITA?
Please come out with your views......
5 Replies
Shwetha
(CA Final)
(67 Points)
Replied 22 July 2010
thanks Harpreet...
can u tell whether server cost shd be taken in cost?
Rohit Chandak
(Financial Service)
(314 Points)
Replied 22 July 2010
An intangible asset is an identifiable non-monetary asset, without
physical substance, held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes.
An asset is a resource:
(a) controlled by an enterprise as a result of past events; and
(b) from which future economic benefits are expected to flow to
the enterprise.
Hence the SAP software is identifiable,non monetary asset adn from this the future benefits are expected to flow to the enterprise..Hence this is a Intangible Asset.
Shwetha
(CA Final)
(67 Points)
Replied 22 July 2010
the server is bought only for the purpose of SAP implementation....it is directly related to the SAP.
so can it be taken as part of ITA -SAPcost?
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