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Forensic Accounting

Can I capitalize software development cost?

Our company has developed an android app with internal developers. How to capitalize the cost? Can I capitalize software developers salary as the cost of the App?

asked Apr 29 in IAS 16 - Property, Plant and Equipment by Rajesh

1 Answer

0 votes
Yes you can. The cost of an item of property, plant and equipment can include costs of employee benefits (as defined in IAS 19 Employee Benefits) arising directly from the construction or acquisition of the item of property, plant and equipment (refer IAS 16 elements of costs)
answered Apr 29 by Mysio Level 5 Member (21,360 points)