To close the recognition characteristics of what is an intangible asset, we must look at the value at which it should be recorded. The intangible asset, as a rule, must be recorded at its cost, that is, at the amount paid or spent for it. But there are some cautions about defining composition or acquisition cost. We will see:
The labor of the employees used in this process must be apportioned according to its application as well. Like this? Each task performed throughout the day to day work must be identified. Example: How much time did the employee spend on planning? And how much did you spend on development ? What about bug fixes and maintenance? To know for sure, you must allocate hours by activity.
Participation of partners
There are cases in which the company's partners also participate in the construction of the asset. If they receive compensation from the company, it can be considered in the cost formation as long as it is of the “ pro-labore ” nature. Amounts referring to the return of loan or share capital, or dividend payments, do not enter.
Third parties and tools
Did you hire third parties to program your platform? The amount paid to them can be included in the cost composition, as long as it refers to construction and not maintenance. Tools hired from third parties that assist in the construction of the asset, if not under control and cannot be sold with its platform (because they are not owned by it), cannot be considered in the cost of the intangible. Examples: project management tools, time management, financial management , cloud server to host and guide the platform.
Construction x Improvements
A platform tends to be always under construction and improvement. But even so, it may be in use and already generating income for the company. That's why it's important to segregate building from improvement. Construction means built, made. While improvement is related to the correction of “bugs” (errors). The build can be divided into phases, more commonly called versions. Each ready-to-use version goes from “under construction” to “active” status.
When the intangible is in the “active” status, ready to use, it needs to be linked to an amortization analysis that represents how long that version will be used or when it will be replaced. In this way, month by month, a small piece of cost will be reallocated or written off from the asset group to the expense group (same concept of depreciating).
There are cases where it is not possible to assess the replacement date. When this occurs (in a few cases), annually at the closing of the company's balance sheet , an analysis of the continuity of the versions will be necessary. So there's no way to escape. In addition to taking care of the cost formation you will need to know when it will no longer be useful. And this all you need to pass on to your accountant. It will be used in your company's accounting records.