SaaS
Capitalizing Software Development Costs
Moving internal coding costs from expenses to assets once technical feasibility is met (IAS 38).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Capitalized Software (Intangible) | Asset (+) | 25,000.00 | - |
| Software Development Expense | Expense (-) | - | 25,000.00 |
💡 Accountant's Note
For SaaS companies, once a product is 'viable,' the salaries of the developers are no longer expensed—they are treated as an asset and amortized over the product's life.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.