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The idea is that you're converting some % of developers' salaries into intellectual property (i.e. code), and that intellectual property is a capital asset that
by gen220 3y ago
The idea is that you're converting some % of developers' salaries into intellectual property (i.e. code), and that intellectual property is a capital asset that depreciates over time in the same way that a tractor or a widget-making machine would.
The salary is not the asset, it's an expense that produces an asset.
- chuckadams 3y agoAh, that makes sense now. The value of the code itself as an asset would be really subjective, but what you pay someone to write it isn't. Thanks :)