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Title: Should internally developed e-commerce websites be capitalized and amortised?
Authors: Lopes, José
Jorge, Susana Margarida F.
Keywords: E-commerce
Websites costs
Issue Date: 2004
Citation: Lopes, Jose ; Jorge, Susana (2004) - Should internally developed e-commerce websites be capitalized and amortised? In Congress of the European Accounting Association. Prague
Abstract: Websites used to perform e-commerce are becoming one of the main fixed assets of “” companies. Some accounting issues arise from the use of e-commerce websites, namely: (i) should the expenses arising from internally developed websites be capitalised and therefore the website treated like an intangible asset? ; (ii) should an ecommerce website be amortised?. In this paper we look at appropriate accounting standards from FASB (FAS 142), AICPA (SOP98-1), IAS 38 from IASB, analysing them and searching for proper accounting treatment. We also analyse the guidelines on this matter provided by FASB - EITF 00-2 “Accounting for Web Site Development Costs”, IASB - SIC 32 “Web Site Costs”, as well as the accounting treatment determined in the UK by the UITF Abstract 29: “Website Development Costs”. We conclude that some expenses incurred on “internally developed” e-commerce websites should be capitalised, but there are differences about the appropriate classification in the balance sheet. As opposed to the EITF 00-2, SIC 32 and UIFT, we suggest that ecommerce websites should be treated in a different way from others websites and they should not be amortised. Instead, they should be periodically tested for impairment.
Appears in Collections:DEG - Artigos em Proceedings Não Indexados ao ISI/Scopus

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