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To: yard_man who wrote (146357)8/27/2002 4:06:09 PM
From: Lizzie Tudor  Respond to of 164685
 
enterprise software is indeed capex!



To: yard_man who wrote (146357)8/27/2002 4:26:23 PM
From: Oeconomicus  Read Replies (1) | Respond to of 164685
 
SW isn't capex -- none of it has a shelf life of more than 3 years.

Sorry, but that's wrong. Software purchased for use in a business is always a capital asset, depreciated for GAAP over it's useful life, which is the period over which the asset is expected to be in service and which may vary from company to company. It's "shelf life" is irrelevant unless you are deciding whether to write off inventory of software held for resale.


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