can I capitalize a website development cost?

Question

We have developed a new company website which has cost over $50,000/= for planning, designing, content writing & photography. Can we capitalize these costs as per IFRS?

Answer 1

You can capitalize as an intangible asset if you can meet IAS 38 requirements. Generally if you can demonstrate that the website was developed solely or primarily for promoting and advertising your products and services and it will generate probable future economic benefits, you can capitalize. Refer to SIC 32of IAS 38 which discusses on website development costs.