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Note 5: Computer Software

Asset recognition threshold on acquisition

Purchases of computer software are recognised initially at cost except for purchases costing less than $10,000 which are expensed at the time of acquisition.

An item of software represents a software licence granted for greater than 12 months; or a developed software application.

Developed software is recognised by capitalising all directly attributable internal and external costs that enhance the software’s functionality and therefore service potential.


An item of computer software is de-recognised upon disposal or when no further future economic benefits are expected from its use or disposal.


All assets are assessed annually for impairment.

Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

Actual 2020


Actual 2019


Gross value



Accumulated amortisation






No indicators of impairment were identified for computer software.

Software assets are amortised on a straight line basis over their anticipated useful lives, being three years.

Software assets are carried at cost and are not subject to revaluation.