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Software capitalisation
Estimate the share of engineering cost that can be capitalised as development of internal-use software.
Finance & unit economicsHow it's worked out
- Capitalised = development-stage hours × loaded cost. Amortisation = capitalised ÷ useful life (straight line)
- Hours tracked by work type
NoteOnly development-stage work after feasibility is established qualifies; research and maintenance are expensed. Rules differ between standards and auditors. Not accounting advice.
Source: IAS 38 Intangible Assets (development phase); ASC 350-40 internal-use software; Ind AS 38
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