06-20-2007, 05:32 PM
Dear,
As far as downloaing of software is concerned, it involves no directly attributable cost and cash outlay. Since, its cost cannot reliably be measured, it can never be recognised either such downloading is lawful or not.
Further, in case of procuring pirated CDs of software, it is totally illegal action against which the developers/owners are getting to be little bit assiduous now-a-days. In my view, every company should get appropriate licensing and should give equal importance to its IT related tangible as well as intangible assets. Auditors must raise these points in their letters to board of directors and Management Letters etc.
IAS 16 does not provide for instructions where something is illegally acquired. In IFRSs, it is assumed that every thing is transparent and legally enforceable. Without legal title and ownership rights etc, these pirated softwares can only be expensed out.
Best regards,
Kamran.
As far as downloaing of software is concerned, it involves no directly attributable cost and cash outlay. Since, its cost cannot reliably be measured, it can never be recognised either such downloading is lawful or not.
Further, in case of procuring pirated CDs of software, it is totally illegal action against which the developers/owners are getting to be little bit assiduous now-a-days. In my view, every company should get appropriate licensing and should give equal importance to its IT related tangible as well as intangible assets. Auditors must raise these points in their letters to board of directors and Management Letters etc.
IAS 16 does not provide for instructions where something is illegally acquired. In IFRSs, it is assumed that every thing is transparent and legally enforceable. Without legal title and ownership rights etc, these pirated softwares can only be expensed out.
Best regards,
Kamran.
