Website development costs

[Tan Chun Huat]

Hi,

I am interested in FRS38, intangible assets, on the portion on website development costs. However, I am confused on what are to be expenses and capitalized.

Will someone be able to offer some advice?

Thanks.

Chun Huat

 

[bklynboy]

Did you read the guidance? Which part is confusing to you? Costs during development stage are capitalized (most at least) and other stages are expensed (prelim and post implement stage is not capitalized). Check this link for a summary of what is allowed (its GAAP but I think IFRS is the same):

https://www.eisneramper.com/capitalizing-software-tl-blog-1216/

 

[Tan Chun Huat]

Hi,

Thanks for the link. Does this also apply to web site development cost?

SIC-32 Intangible Assets—Web Site Costs

 

[bklynboy]

Yes.