Ann: 2017 AGM Presentation, page-14

and if I may add..why does ACX capitalise development costs of $15.3 in 2017 and $9.2m in 2016 rather than expense them like any other well managed software company such as IRI? @webllinks

The thing is @webllinks, your comment above is directly contradicted by CFO Paul Koppelman's statement below, from the 22nd August. Paul was previously the CFO of Medibank Private- your accounting qualifications are???

"Just over 40% of R&D spend has been capitalised in each of the last two years and amortised over a three-year period. This is conservative relative to peers who tend to capitalise more and amortise over longer periods of time."

Here is the context of the comment:

"During the year, we deliberately increased expenditure on engineering and product development to drive future growth and maintain and extend our competitive advantage.

Aconex has invested profits and free cash into product development at an accelerated rate over the past two years.

In FY17, total cash expenses, including capitalised software development costs, increased 63% to $35.7 million, or 22.1% of revenue, following an uplift of 85% from FY16.

We expect the level of cash investment in R&D to return within the 15% to 20% of revenue in the future.

The uplift in FY17 was driven by an investment in new products, including Connected Cost and packages, as well as the ongoing enhancements including design management and mail routing.

Just over 40% of R&D spend has been capitalised in each of the last two years and amortised over a three-year period. This is conservative relative to peers who tend to capitalise more and amortise over longer periods of time."

https://hotcopper.com.au/threads/an...script.3644271/?post_id=26825703#.WgLPi2iCyUk

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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.