Just wondering can anybody out there help me. Our firm is considering purchasing software on behalf of our customers. This software package will allow our customers to submit necessary information to allow us to assess whether or not to advance funding to customers and to assess their creditworthiness etc. We are purchasing the software and in effect are using this as a type of customer sponsorship, as individually the purchase of this software would be onerous on some of our smaller customers/prospective customers.
My question is are we correct to charge depreciation on this software over the next three years? Is there any guidance etc. on a similar situation?
All help or suggestions would be appreciated.