Domain Name Renewal Accounting Treatment. The domain name is treated as an intangible asset because it generates revenue externally through ads or can be sold at a later date. The content in the Codification is organized by Topic Subtopic Section.
197 over a 15-year period. If the business that acquired the domain name is a company the corporate intangible assets regime FA 2002 Sch. These are capital expenses that can qualify for capital allowances.
If the business expects the usefulness of the domain name to end at a certain time it should amortize the domain name over its useful life.
The business would book an amortization expense journal entry of 1000 once a year for 10 years. If you cancel a domain name or let it expire it may be deleted by your Registrar. Similarly the research and planning costs can be included as revenue expenditure. In this case a domain name that did not appear in the balance sheet was considered fraudulent and gave tax authorities the opportunity to recover eBay France.