Sunday, March 16, 2014

Software Development Expenses – Normal Upgrade – Revenue Expenditure

Due to rapid developments in technology, software up gradation is required to keep & ensure marketability of product specially in mobile phoning. Sale ability of a software or upgrade lasts only as long as a newer update/upgrade is not available. The period between two upgrades is not substantial and as such, there may be no enduring benefit from the software. Expenditure which enables the profit-making structure to work more efficiently leaving the source of profit- making structure untouched would be revenue in nature.

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