I am currently working as a Capital Accountant & l have been asked by my boss whether the Data Warehouse Costs are Capitalisable
The majority of the costs are made up of 400k over 3 years of external consultancy fees & some Internal Management Costs of 200k over 3 years
Software Costs of £100k.
The whole project is really to integrate data across the organisation and improve the speed & accuracy of reports.
My boss is of the idea that we can capitalise the whole lot as project costs.My view is that we can only capitalise software costs. Another thought is to capitalise in line with IAS 38- development costs but l am not sure.
Replies (3)
Please login or register to join the discussion.
R&D
Not sure about capitalising your costs, but you may qualify for R&D tax relief on this project.
not sure about R&D
it may not be innovate enough
do you want to capitalise you will only get limited AIA and FYA & WDA therefare
Trying to integrate data from multiple sources can count, a project doesn't have to be innovative to qualify. Just that there was uncertainity at the start of the project.
However I would argue that taking data from multiple sources and trying to speed up reporting would be innovative, that said a project being innovative isn't enough for it to qualify for R&D tax relief.
It's all down to what exactly is being attempted and if there was uncertainity at the start of the project.