RMGs are guidance documents. The purpose of an RMG is to support PGPA Act entities and companies in meeting the requirements of the PGPA framework. As guides, RMGs explain the legislation and policy requirements in plain English. RMGs support accountable authorities and officials to apply the intent of the framework. It is an official’s responsibility to ensure that Finance guidance is monitored regularly for updates, including changes in policy/requirements.
Audience
This Resource Management Guide (RMG) is relevant to all officials in Commonwealth entities, particularly chief financial officers (CFOs) and finance teams, where the entity has:
- developed software for its own internal use, or
- entered into cloud computing arrangements (CCAs) such as software as a service (SAAS) arrangements.
Key points
This guide provides guidance on the accounting treatment for costs that a Commonwealth entity (entity) has incurred on internally developed software (IDS) and CCAs.
- IDS is software developed by the entity, or purchased by the entity and significantly modified, for the entity’s internal use. Internal use is where there is no substantive plan in existence, or being developed, to market the software externally during the software’s development.
- CCAs are where the entity does not own the underlying software, but rather accesses and uses the software as needed. SAAS arrangements are a type of CCA, in which a customer has the right to access a supplier’s application software.
Intangible assets are identifiable non-monetary assets without physical substance (see paragraph 8 of AASB 138 Intangible Assets).
Resources
Related resources including examples, related guidance and links are located in the right hand menu under Related Resources.
Example: project cost allocations
Provides examples of cost allocations for internally developed intangible assets. This is available in the right hand menu under Tools and templates.
Illustrative example: costs to expense and capitalise
Provides illustrative examples on whether to expense or capitalise. This is available in the right hand menu under Tools and templates.
