the costs of acquiring and developing software that is not integral to the related h 612369

ASOS plc (2012)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2012 [extract]

1) ACCOUNTING POLICIES [extract]

b) Intangible assets [extract]

Other intangible assets

The costs of acquiring and developing software that is not integral to the related hardware is capitalised separately as an intangible asset. This does not include internal website development and maintenance costs which are expensed as incurred unless representing a technological advance leading to future economic benefit. Capitalised software costs include external direct costs of material and services and the payroll and payroll-related costs for employees who are directly associated with the project.

Capitalised software development costs are amortised on a straight-line basis over their expected economic lives, normally between 3 to 5 years. Amortisation is included within administrative expenses in the statement of comprehensive income. Software under development is held at cost less any recognised impairment loss.