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Where are Website development costs appear on Financial Statements? Also, Examine the approaches taken during the...

Where are Website development costs appear on Financial Statements? Also, Examine the approaches taken during the application and infrastructure development stage and the planning and operating stage.

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Answer #1

Website development cost is considered as intangible assets after development phase. Website development cost appeared on Assets site under Balance sheet.

Development stage

Application and infrastructure development, Graphical design and content development stages are type of Development Phase. Expenditure incurred during Development phase should be capitalized as intangible assets.

Planning Stage

Expenditure incurred during in planning stage of website development is recognized as expense during the period when it is incurred because under this stage No economic benefit of expense for Future period.

Operating stage

When Website is ready to available for use at this time operating stage started. Expenditure incurred for maintain website during operating phase should be recognized as expense unless it is meet criteria of capitalization.
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