Internally generated software cannot be capitalized and must therefore be expensed.

Name: Internally generated software cannot be capitalized and must therefore be expensed.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Internally generated software can be capitalized once it reaches the development phase, according to accounting standards such as IAS 38. Costs incurred during the research phase are expensed, but once development begins, directly attributable costs can be capitalized.

Internally Generated Software Cannot Be Capitalized and Must Therefore Be