Hi, I'm hoping you can help me with how I should be treating a IT invoice with regards to capitalisation treatment. We utilise a software programme to manage various parts of our business (both from an operational and accounting perspective). In this instance we have been charged by the external vendor who owns the software for the following: 1. Added product ledger capability which allows for a default tax and override options. 2. Modification of price calculator, extension of statement with additional text, changes to the GL in the system, and other similar matters. The reason we are having these additions / modifications added are due to recent legislative/compliance requirements around a Regional Fuel tax. It is for this reason I believe these are capitalisable costs as I can argue that it provides future economic benefits (both cost savings - i.e. penalty imposed if we did not & benefit from adding the capability - i.e. the ability to continue to trade). If we didn't make these changes our business would be significantly impacted (in essense it's a mandatory requirement). I'm still struggling at times to understand IT capitalisation rules, so would appreciate any guidance, etc. Thank you, Greg
