Appendix 1 - Project cost allocations

The following items are not exhaustive and assume that requirements to capitalise the project are met. Paragraphs 51-67 of AASB 138 and paragraphs 16-22A of AASB 116 provide further guidance on capitalisation of costs.
 

Item

Expense

Software – Capitalise (AASB 138)

Plant & Equipment – Capitalise (AASB 116)

Research phase

 

 

 

User testing of existing software to inform a business case

 

 

Consultant fees

 

 

Staff costs

 

 

Development phase

 

 

 

Off-the-shelf systems (excluding SAAS arrangements which are service contracts in substance)

 

 

Consultant fees – design & construction

 

 

Depreciation of software licences & computers – specifically required to develop or test the asset

 

 

Equipment - other (printers, PCs, etc)

 

 

Data migration costs – test data used for system testing

 

 

Data migration costs – outside of system testing

 

 

Project manager costs – planning data migration and/or training

 

 

Staff costs (including project managers) – development &/or testing

 

 

Contractor & supplier costs – development &/or testing

 

 

Staff costs (including project managers) – not directly related to the project (e.g. attending training)

 

 

Administration costs – not directly related to development

 

 

Project governance committees

 

 

Stakeholder meetings

 

 

Initial pilot system to test feasibility prior to developing the final system to be capable of being used by the entity

 

 

Inefficiencies in development (e.g. if an entity develops a system to provide xyz functionality, but subsequently decides to abandon the work on z, the costs related to z could not be capitalised)

 

 

Implementation phase

 

 

 

Replacement of computer terminals 

 

 

Training – staff costs

 

 

Advertising and promotional costs

 

 

Manuals (including their development at any phase)

 

 

Post-implementation reviews

 

 


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