Question: Companies will sometimes develop software for either external use (for example, to sell to customers) or for internal use. Should a company expense or capitalize

Companies will sometimes develop software for either external use (for example, to sell to customers) or for internal use. Should a company expense or capitalize internally developed software? IFRS does not provide specific rules for software; the accounting for software development costs falls under the general guidance for intangible assets. Does IFRS require that software development costs be expensed or capitalized? Please explain. Use the international authoritative literature for support.

Step by Step Solution

3.37 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Under IFRS software development costs are always expensed duri... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

578-B-A-D-I-D (771).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!