Home » IAS 38

Treatment of Windows Operating System License

5 December 2009 1,505 views 3 Comments

Para 4 of IAS 38 says “computer
software for a computer-controlled machine tool that cannot operate without
that specific software is an integral part of the related hardware and it is treated
as property, plant and equipment. The same applies to the operating system of a
computer.”

Its true for branded computers which come pre installed with windows. But If we buy a non branded computer (without opereating system, ofcourse) and purchase windows seperately. Should I recognize the windows under IAS 38 or include in hardware’s cost (treat it under IAS 16).

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3 Comments »

  • annsilvers said:

    i have apending query which i cannot successfully post:

    Can a funding agency enter into a bilateral contract with an external auditor to subject a non-profit entity to an external financial audit? The supposed audit engagement fee will be paid directly by the funder to the external auditor. The non-profit does not become a party to the audit engagement. Then, who becomes the addressee of the audit report? Does the external auditor become an extension of the personality of the funder? IS there such a thing as a project audit that will not be within the purview of international accounting standards?

    Cna there be a tri-partite audit engagement among the funder, external auditor and auditee-non-profit entity?

    # 6 December 2009 at 8:38 am
  • riyer said:

    Treat as part of hardware’s cost. Bcos’ the computer cannot be brought to its intended use unless the o/s is up and running.

    # 22 December 2009 at 10:17 am
  • ifrslist
    ifrslist said:

    [New Post] Treatment of Windows Operating System License – http://www.ifrslist.com/2009/12/treatmen...
    via Twitoaster

    # 29 January 2010 at 9:59 am

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