Which account to use for Software Renewal

[nilghar]

I am debating which account to use for the antivirus protection 1 year renewal we just purchased?

Do i need to expense it all at once or do i need to book it into software asset list and depreciate it ?

Thanks in advance!

 

[killdmockinbird]

hi , first, antivirus software is an intangible assets as defined in IAS 38: Intangible Assets"

"When the software is not an integral part of the related hardware,
computer software is treated as an intangible asset."

but, before you treated it as an assets and therefore depreciate/amortize it, you should refer to the recognition criteria

IAS 38 requires an entity to recognise an intangible asset, if and only if :
"it is probable that the future economic benefits that are attributable to the asset will flow to the entity;

if we did not know the " the future economic benefits that are attributable to the asset", so the recognition criteria not met

IAS 38 then requires the expenditure on this antivirus software to be recognized as an expense

sorry for my poor English, enjoy