Is computer software an intangible asset

Under most circumstances, computer software is classified as an intangible asset because of its nonphysical nature. This article only touches on a few of the key topics. Many other instances may have different accounting standards that might need to be applied such as cloud computing, multi-use software, developmental software, and shared software between divisions. Federal Accounting Standards Advisory Board. Accessed July 28, Governmental Accounting Standards Board. Financial Statements.

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For example, an operating system such as Microsoft Windows, Mac, Linux of a computer is an integral part of the computer and the computer can not operate with such OS. Therefore operating system should be capitalized along with the hardware cost.

However MS Office package is not an integral part of a computer and therefore should be treated as intangible assets and accounted for as per IAS 38 - Intangible Assets. Hope you got the answer.

Your comment on this answer: Your name to display optional : Email me at this address if a comment is added after mine: Email me if a comment is added after mine Privacy: Your email address will only be used for sending these notifications. Related questions 1 answer. Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements GWFS as required in GASB For more information, see Capitalization Thresholds.

The only transactions recorded to governmental funds in USAS related to capital assets are initial purchases or sale of capital assets cash transactions.