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Can you expense software

Software accounting treatment

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Hi, I need to clarify something.

I am aware of general principles regarding accounting treatment of software. In theory purchasing Windows operating system which is likely to last over 2 years  and enables PC to run should be capitalised. However, can't companies set limits and choose to expense costs below certain value? If the software costed less than £100, could it be written off to P/L ? 

It simply seems not worth to capitalise it. Can someone please advise?




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By Accountant A
30th Mar 2019 15:09

It doesn't really matter. You are anonymous so no-one will ever know if you haven't accounted for the software correctly.

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By Samantha20
31st Mar 2019 09:43

Most software licenses are for a year and so I don't capitalise them.

Windows is usually included in the cost of the computer so will be capitalised.

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Replying to Samantha20:
By BarbaraIA
01st Apr 2019 06:48

Sometimes it can be bought separate - my PC came without Windows

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