expense for digital licence
expense for digital licence
Company incurred some expenses (technical staff costs and other expenses) solely for the purpose of bidding the digital bank licence. As the outcome of the bidding will be known next year, can the Compay capitalise this as prepayment at year end and then decide in following year based on : (to transfer to other asset -if successful, expense immediately -if unsuccessful)?
Re: expense for digital licence
isn't this banking licence fee just a tax levied by a government to be expensed in P&L anyway?
Re: expense for digital licence
The company will need to establish infrastructure for the digital platform. I am not sure that will be some form of intangible asset in future.
Re: expense for digital licence
Infrastructure is a tangible asset and yes - you can treat it as an asset as long as you consider the probability of future economic benefits to be >50%. As for the web software - check out SIC 32:
https://ifrscommunity.com/knowledge-bas ... site-costs
https://ifrscommunity.com/knowledge-bas ... site-costs