Discussion:Accounting software- FA or IA ?
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Discussion Forum Index --> Accounting Questions --> Accounting software- FA or IA ?
| 17 August 2007 | |
| Hello all,
Is accounting software fixed asset or intangible asset ? Thanks. | |
Tlcqbadvisor@msn.com (talk|edits) said: | 23 August 2007 |
| Intangible assets and some example of are Amortization, Copyrights, Franchise/licenses, Goodwill, leasehold improvements, leaseholds, patents, trademark/tradenames. Software is tangible and therefore it should be a fixed asset. Intangible assets are assets that cannot be touched or felt, that is the literal meaning. | |
| August 23, 2007 | |
| Software may be considered a fixed asset if it is bundled and included with hardware. It is generally an intangible asset if it is purchased separately. If it is designed by the company, then other rules may apply.
Amortization is the result of expensing the intangible asset; it is not an example of an intangible asset. I could be wrong, but I think the reason software was named that, and not something like "hardware" which is tangible, is because one cannot touch it. | |
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