I need to know the rules for accounting for software licenses
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I need to know the rules for accounting for software licenses
Software isn't exactly well covered. First, you need to decide if the cost is high enough to warrant capitalizing it at all. Generally companies have a price point under which they just expense stuff, and over which they capitalize.
It may also depend on whether the lease is actually ongoing or just good for a year. Probably the longest life software is going to be considered to have is about 3 years, so you can amortize it over that life, unless the lease period is actually shorter and then you would use that.
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