I have a cloud based Oracle License fee which is billed monthly £9k for 33 months. My question is, is this capex and if so, is it an intangible asset or PPE?
I have searched and searched and because it is cloud based licensing I am really not sure the accounting treatment for this cost!
Thanks in advance
Replies (4)
Please login or register to join the discussion.
What are you paying for? An Asset or an ongoing licence? I had one of these recently that happened to be with a client subject to an audit - there was a choice on how to pay for the software a one off hit of 50k (which the auditors suggested would be P&M) or a monthly licence fee which they were happy to treat as a lease cost.
If the cost of the software is 300k that you just happen to be paying on a finance arrangement over 3 years thats one thing, but if you are paying a monthly licence fee thats another.