Should computer software be classified as intangible assets or Property, Plant & Equipment?
IAS 38 clarifies that computer software for a computer controlled machine tool that cannot operate without the specific software is an integral part of the related hardware and it is classified as Property, Plant & Equipment.
The same applies to the operating system of a computer and operating systems software. Where the software is not an integral part of the related hardware, computer software is treated as an intangible asset, e.g. application software. For instance, accounting software used for bookkeeping system.
Friday, June 22, 2007
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment