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Global AccountingGeneral AccountingUpdated: Sep 13, 2026
General Guidance: The principles described for Global Accounting are broadly applicable but should be verified against your specific local tax laws.
Direct Answer
Under global standards, research and planning phases must be expensed. Application development (coding, database creation) can be capitalized as an intangible asset. Ongoing maintenance and hosting must be expensed as incurred.
The Capitalization Threshold
To capitalize, the business must demonstrate the technical feasibility of the software, the intention to complete it, and that it will generate probable future economic benefits (e.g., an e-commerce store that takes payments, not just a static "About Us" page).
Amortization
Once the website is launched, the capitalized costs are transferred to the balance sheet and amortized over its useful life (typically 2-3 years, given rapid technological changes).