Can you Capitalise Data Warehouse Costs

Can you Capitalise Data Warehouse Costs

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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.

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By merlyn
21st Jul 2012 10:17

R&D

Not sure about capitalising your costs, but you may qualify for R&D tax relief on this project.

 

 

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By carnmores
23rd Jul 2012 10:17

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 

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By merlyn
31st Jul 2012 08:11

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.

 

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