Really should computer system application be classified as intangible assets or a Property, Plant and Equipment?
IAS 38 clarifies that computer system application for a laptop or computer controlled machine tool that cannot operate without the specific computer software is an integral part of the related hardware and it is considered Property, Plant and Equipment.Precisely the same applies to the operating system of a computer and operating systems software or application. Where the computer software is not an integral part of the related hardware, computer software program is treated as an intangible asset, e.g. application software program. For instance, accounting software program used for bookkeeping system.
