Answer to Question #62554 in Accounting for Asif

Question

Which of the following is not an intangible asset? please explain

A, Software development cost
B, Goodwill
C, Pre-payment for purchase of softwares
D, Website development cost
E, None of the above

Answer 1

C, Pre-payment for purchase of software

A business should initially recognize acquired intangibles at their fair values. You should initially recognize the cost of software developed internally and leasehold improvements at their cost. The cost of all other intangible assets developed internally should be charged to expense in the period incurred.