Accounting Policies Setting of Internally Developed Software and its Subsequent - Expenditures in The Traditional Production Organisations
Background: In recent decades, technologies have overlapped with many traditional products. The competition is no longer limited to the quality of the products but also to the level of technology used in the products. That resulted in traditional production organisations finding their way into the field of software development. These organisations encounter many challenges due to the lack of expertise. In addition, a clear understanding of different software development methods was needed. This study focuses on the accounting challenges regarding distinguishing between subsequent expenditure and maintenance expenses. The purpose of this study is to provide an overview of how organisations set their accounting policies related to internally developed software. In addition to how the operational departments interact with these policies. Methodology: To answer the research questions, a qualitative research method was adopted. It was mainly based on accumulated research work, where information was collected through interviews and documentations. Afterwards, the data were analysed, and finally, the results were discussed. Concluding Discussion: Despite the fact that the sample was relatively small, the thesis showed several results. The results were represented by the organisations’ work on setting primary accounting policies, within the framework of IFRS. The study shows that cooperation among organisations strengthens the implementation of proper policies. Moreover, it encourages finding the optimal accounting treatment for software development methods. Finally, it enhances operations departments’ role in developing and improving procedures.
MSc in Accounting and Financial Management
Al Mawed, Alaa
Internally Developed Software