Written question asked by Lord Hammond of Runnymede (Conservative) on Thursday, 29 June 2006, in the House of Commons. It was due for an answer on Monday, 3 July 2006. It was answered by Anne McGuire (Labour) on Monday, 17 July 2006 on behalf of the Department for Work and Pensions.

Computer Software

Question: To ask the Secretary of State for Work and Pensions what his Department's policy is on the treatment of depreciation of computer software; and whether any extraordinary charges in respect of computer software assets have been made in the last three years.

Answer: The Department has a policy to depreciate software using a straight-line method, at rates calculated to write off the current replacement cost, less estimated residual value, of each asset in equal instalments over its expected useful life.Assets are depreciated from the month following acquisition or from when the asset is brought into use, if later.Software purchases are depreciated over a period of five years. Software licences and software development costs are depreciated over a period of five years or the life of the asset or licence period, if shorter.No extraordinary charges have been made in the last three years in respect of software.

Secondary information