IDG Contributor Network: Why software capitalization can be wasteful

There is a long-lasting debate among IT stakeholders and executives on whether software is a long-term asset or a cost of conducting business. In this article, I will interpret the rationale for both sides in the context of the enterprise IT in the digital age.
“Capitalization” is an accounting method used to spread out the cost of a new asset over its useful lifespan to align the recognition of associated expenses and benefits for an accurate reflection of asset’s financial p