Software implementation - intangible asset US GAAP

Pee

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Dear All,


If a company implements SAP system should they classify all of the costs related to this implementation to intangible asset? I mean, there are costs regarding external and internal consultants working hours as well as the employees' business trips (from other entities to the entity performing implementation). I'm not sure which part of the expenses should be recognized as addition to asset value, and which part not.



Thank you for any help here.
 

bklynboy

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We implemented SAP a few years back and consultants work as well as internal labor were capitalized. Travel qualified if those people were needed to help with coding and not just oversight. Roughly speaking its those costs to get the system ready - exclude training and scoping costs and management oversight.

Link for general information: https://www.eisneramper.com/capitalizing-software-tl-blog-1216/
 

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