We designed a Booking Program for our company, Cost 10K, It this a Fixes asset or other Asset ? 5 year Depr ?

Answer 1

This is a self-generated computer software, making it an intangible asset, under both FASB 142 and IAS 38. Generally, internally developed software (whether for use or sale) should be charged to expense until technological feasibility, probable future benefits, intent and ability to use or sell the software, resources to complete the software, and ability to measure cost can all be proved.

Only if you pass all the above recognition criteria can you capitalise your intangible asset. The next thing you look at is its expected useful life. Assets with finite useful life are amortised, those with infinite useful lives are not, but you have to perform all the impairment tests annually.

If you have ascertained your asset has a finite useful life (or give it your best estimate), then you amortise the cost accordingly. Straight-line amortisation is the default method.

Answer 2

Technically, it's probably a fixed asset. Depreciation should be taken over the life of the asset, which for software/programs, etc, is probably 2 years, no more than 3.