IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2025v3p279-288.html
   My bibliography  Save this article

Accounting For Computer Software Costs

Author

Listed:
  • TEIUSAN SORIN-CIPRIAN

    (1 Decembrie 1918 University of Alba Iulia, Faculty of Economic Sciences)

Abstract

Hundreds of thousands of companies all over the world use computers, with different software products and other useful applications. Nowadays, businesses need these modern tools. In the current digital economy, where information technology serves as a central pillar of competitiveness and innovation, the accounting treatment of costs associated with the development, acquisition, and use of computer software has become a critical topic in both academic literature and professional practice. The costs related to computer software have distinctive characteristics compared to traditional assets, especially due to their intangible nature, short life cycle and considerable involvement of research and development processes. This paper aim to conduct an analysis of the accounting regulations applicable to software costs, in order to identify the acounting treatment for the costs of software purchased and internally generated in companies. In accounting, the software created by the entity or purchased from third parties for its own use is included in intangible asset category. Research results comprise recognition, initial valuation and accounting of the internally generated software.

Suggested Citation

  • Teiusan Sorin-Ciprian, 2025. "Accounting For Computer Software Costs," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 279-288, June.
    • Handle: RePEc:cbu:jrnlec:y:2025:v:3:p:279-288
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2025-03/27_Teiusan.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aboody, D & Lev, B, 1998. "The value relevance of intangibles: The case of software capitalization," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 36, pages 161-191.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zachary King & Thomas J. Linsmeier & Daniel D. Wangerin, 2024. "Differences in the value relevance of identifiable intangible assets," Review of Accounting Studies, Springer, vol. 29(4), pages 3838-3886, December.
    2. Yuan Ding & Thomas Jeanjean & Hervé Stolowy, 2013. "Accounting for Stakeholders or Shareholders? The Case of R&D Reporting," Post-Print hal-01002936, HAL.
    3. Po-Hsuan Hsu & Dongmei Li & Qin Li & Siew Hong Teoh & Kevin Tseng, 2022. "Valuation of New Trademarks," Management Science, INFORMS, vol. 68(1), pages 257-279, January.
    4. Lorena Mitrione & George Tanewski & Jacqueline Birt, 2014. "The relevance to firm valuation of research and development expenditure in the Australian health-care industry," Australian Journal of Management, Australian School of Business, vol. 39(3), pages 425-452, August.
    5. Xiaomeng Chen & Sue Wright & Hai Wu, 2018. "Exploration intensity, analysts’ private information development and their forecast performance," Accounting and Business Research, Taylor & Francis Journals, vol. 48(1), pages 77-107, January.
    6. Dinh, Tami & Schultze, Wolfgang, 2022. "Accounting for R&D on the income statement? Evidence on non-discretionary vs. discretionary R&D capitalization under IFRS in Germany," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 46(C).
    7. Atoche, Teresa duarte & Pérez lópez, José ángel & Camúñez ruiz, Jose antonio, 2012. "La relevancia de los gastos de I+D. Estudio empírico en el sector del automóvil," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(2), pages 257-286.
    8. Hegde, Shantaram P. & Mishra, Dev R., 2023. "Patented knowledge capital and implied equity risk premium," Journal of Banking & Finance, Elsevier, vol. 148(C).
    9. Constant Djama & Guillaume Dumas & Isabelle Martinez, 2011. "L'innovation : une incitation à la gestion des résultats ?," Post-Print hal-00650418, HAL.
    10. Salvatore Loprevite & Daniela Rupo & Bruno Ricca, 2018. "Integrated Reporting Practices in Europe and Value Relevance of Accounting Information under the Framework of IIRC," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(5), pages 1-1, March.
    11. Olubunmi Faleye & Rani Hoitash & Udi Hoitash, 2018. "Industry expertise on corporate boards," Review of Quantitative Finance and Accounting, Springer, vol. 50(2), pages 441-479, February.
    12. Ciftci, Mustafa & Cready, William M., 2011. "Scale effects of R&D as reflected in earnings and returns," Journal of Accounting and Economics, Elsevier, vol. 52(1), pages 62-80, June.
    13. Guillaume Dumas, 2012. "Le Comportement Myopique D’Investissement En R&D : Une Realite En France ?," Post-Print hal-03948465, HAL.
    14. Jeremiah Green & Henock Louis & Jalal Sani, 2022. "Intangible Investments, Scaling, and the Trend in the Accrual–Cash Flow Association," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 60(4), pages 1551-1582, September.
    15. Ellahie, Atif, 2024. "Accounting for bubbles: A discussion of Arif and Sul (2024)," Journal of Accounting and Economics, Elsevier, vol. 78(2).
    16. Hyunmi Ji, 2020. "Financial Analyses and Corporate Evaluation on Sustainable Ability to Generate Excess Profit," Sustainability, MDPI, vol. 12(11), pages 1-13, June.
    17. Thomas Jeanjean & Anne Cazavan-Jeny, 2003. "Value relevance of R&D reporting: a signalling interpretation," Working Papers hal-00592028, HAL.
    18. Ho, Simon S.M. & Li, Annie Yuansha & Tam, Kinsun & Tong, Jamie Y., 2016. "Ethical image, corporate social responsibility, and R&D valuation," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 335-348.
    19. Anne-Laure Farjaudon, 2006. "L'évaluation des marques, au carrefour des recherches en comptabilité, finance, contrôle de gestion et marketing," Post-Print halshs-00548127, HAL.
    20. Higgins, Huong, 2013. "Can securities analysts forecast intangible firms’ earnings?," International Journal of Forecasting, Elsevier, vol. 29(1), pages 155-174.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2025:v:3:p:279-288. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae The email address of this maintainer does not seem to be valid anymore. Please ask Ecobici Nicolae to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.