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Dear tutor,
Under IAS 38 computor software is capitalised when purchased. Under the purchase price there are certain number (say 100) of licences negotiated.
What happens when company decides to purchase additional user licences in, say, two years time? Are these licences capitalised or expensed?Regards,
I was going through IAS 38 and it says:
“Due to the nature of intangible assets, subsequent expenditure will only rarely meet the criteria for being recognised in the carrying amount of an asset. [IAS 38.20].”
Does that mean that correct treatement would be to expense new licences when purchased in later period?
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