Not amortising is only more profitable if you stop developing…
What many companies who amortise development costs do is make some enhancements to some software or build new software so in theory generating a greater asset value but the reality is they’re just kicking the can of accounting for developer costs down the road
Have worked in several businesses that amortised development costs and it always comes back to bite you at some point
What many companies who amortise development costs do is make some enhancements to some software or build new software so in theory generating a greater asset value but the reality is they’re just kicking the can of accounting for developer costs down the road
Have worked in several businesses that amortised development costs and it always comes back to bite you at some point