SIC 32 concludes that a website developed by an enterprise using internal expenditure, whether for internal or external access, is an internally generated intangible asset that is subject to the requirements of IAS 38, Intangible Assets.
SIC 32 identifies the following stages of website development:
SIC 32 addresses the appropriate accounting treatment for internal expenditure on each of those stages of development and operation:
(a) A website arising from development should be recognised as an intangible asset if, and only if, in addition to complying with the general requirements described in IAS 38.19 for recognition and initial measurement, an enterprise can satisfy the requirements in IAS 38.45. In particular, an enterprise may be able to satisfy the requirement to demonstrate how its website will generate probable future economic benefits under IAS 38.45(d) when, for example, the website is capable of generating revenues, including direct revenues from enabling orders to be placed. An enterprise is not able to demonstrate how a website developed solely or primarily for promoting and advertising its own products and services will generate probable future economic benefits, and consequently all expenditure on developing such a website should be recognised as an expense when incurred.
(b) Any internal expenditure on the development and operation of an enterprise's own website should be accounted for in accordance with IAS 38. The nature of each activity for which expenditure is incurred (eg training employees and maintaining the website) and the website's stage of development or post-development should be evaluated to determine the appropriate accounting treatment. For example:
(c) A website that is recognised as an intangible asset under SIC 32 should be measured after initial recognition by applying the requirements of IAS 38.63-.78. The best estimate of a website's useful life should be short.
Some countries require research costs to be expensed and development costs to be capitalized
This is an accounting method used by the Oil and Gas industry. Specifically, it is a method in which the company capitalizes costs associated with exploration to successfully locate reserves and expenses costs associated exploration that does not result in the discovery of reserves. Opposite to successful-efforts is Full Costing method in which all costs associated with exploration and development are capitalized whether any reserves are found our not.
Overheads costs are indirect manufacturing costs which are not directly allocatable to units of products.
ADVANCED ACCOUNTING covers accounting operations, patterns, merger of public holding companies, foreign currency operations, changing financial statement ... Cost accounting: A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance Type your answer here...
ADVANCED ACCOUNTING covers accounting operations, patterns, merger of public holding companies, foreign currency operations, changing financial statement ...Cost accounting:A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance.
The accounting treatment for transaction costs are as deductible for equity range. Since the IPO is defined as the first issuance of equity. Accounting also treats transactions of cost for IPO as a merger accounting method.
Some countries require research costs to be expensed and development costs to be capitalized
No the recipient is responsible for treatment costs.
direct costs,indirect costs,sunk costs, Activity based costing.
Economic costs look refers to a combination of accounting costs(Explicit costs),Implicit costs and opportunity costs. Accounting costs only considers financial and costs incurred or agreed to be payed in order to produce a good or a service.
Accounting that categorizes costs at different job units
This is an accounting method used by the Oil and Gas industry. Specifically, it is a method in which the company capitalizes costs associated with exploration to successfully locate reserves and expenses costs associated exploration that does not result in the discovery of reserves. Opposite to successful-efforts is Full Costing method in which all costs associated with exploration and development are capitalized whether any reserves are found our not.
greater then economic profits,as accounting profits do not include implicit costs
Reduction of reporting costs of managerial accounting information
Prime cost in restaurant accounting is the sum of labor+food costs
It costs about $10,000 to receive an online accounting degree.
Overheads costs are indirect manufacturing costs which are not directly allocatable to units of products.