What is the different between budget control and budgetary controls 

million thanks 
Dear Sandeep,
All costs directly related to software development can be capitalised including salary and travelling expenses provided it meets the recognition criteria as per standard on Intangible Assets. 
hello friends,
Our company is under going major software up-gradation and the implementation is only schedule on 1-1-09. Need help to relate which IFRS standard i should be referring to as far as capitalisation is concerned.  Can expenses like Travel cost should be capitalised as the software is upgraded developed offshore.
would appreciate your inputs.



Dear Friend



A Budget

· Is a predetermined statement of a company’s objectives during a period of time.

·The budget is like a plan which guides the managers who are responsible for achieving certain business objectives.

·The budget normally has an overall or master budget which is made up of sectional/subsidiary budgets prepared by the different sections in the company.

· Be careful that a budget is a plan but a forecast is merely a prediction of what will happen as a result of a given set of circumstances.

Budgetary Control

· Is a system which uses the budgets for planning and controlling a business activities.

· It quantifies and is financially oriented to guides the managers to achieve certain business objectives..

· Managers will compare the actual with the budgeted figures and the variances will then be investigated and corrective actions be taken



Hi Kalehiwet,
There is no as such a difference between budgetary control and budget control. Both  indicates the control aspect of the budget where  favourable and unfavourable variance explanations are used as a feed back to higher management to be used as appropriate.
Though I have already clarified in this matter by citing the basics of budget and budgetary control.
Once again I would like to make it absolutely clear that Budgetary Control is a Technique which uses the Budgets as process or tools to exercise the controlling and evaluating them on the parameters defined to find out the variances as well as to acertains the reasons for them.
Basically budgets form an integral part of Budgetary control process/system. On the other hand Budgets Control does indicate the same process i,e, Control thru Budgets.
However, if one really wants to establish some difference it can be traced out fundamentally with the planning and preparation part of budget exercise but again such an exercise would become the part and parcel of Budgetary Control System. Budgets are basically the plans or estimates or yardsticks against which actuals are monitored and variances are reflected to take corrective actions.
I concur.   

Best Regards,

Sudan Anduze