Comment by dafdaslkjvalk2j
3 years ago
We won't know where the line is until we get guidance from the courts.
A lot of things in real estate that you might think qualify as just maintenance actually have to be depreciated. Like, repairing a roof has to be capitalized since the roof will be around for awhile. The devops equivalent might be migrating from docker swarm to k8s-- the k8s cluster will be around for awhile.
The average roof has a lifespan at least an order of magnitude greater than a k8s cluster. Most roofs being put on today will outlast k8s itself.
Software is a liability, not an asset. Treating the construction and maintenance of this horrible liability knows as “code” is a complete misunderstanding of what software actual is.
It's just an example. Another is paint. The rule is close to but not exactly "if it lasts more than a year it has to be depreciated instead of expensed."
The book value of the k8s work could be completely expensed as soon as it is replaced.
Also, your belief that "software is a liability" is irrelevant. What matters is that tax law calls software an asset (as does most everyone else, even ones who fundamentally understand it).
> Also, your belief … is irrelevant.
This is true everywhere and always.
I agree with you, lots and lots of software definitely has the properties of an asset. There’s also plenty of software that’s hastily written, untested, and basically not fit for use beyond a short expiration date. More like a jug of milk with a shelf life than a fine grand piano with resale value.
If the software makes money for the business, it is an asset.
That seems like a very broad way of classifying assets.
Are people assets? Certainly not on the balance sheet I hope.
What about a contract? Is a contract an asset? I’m actually curious, not trying to be a smart ass.
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> the k8s cluster will be around for awhile.
without someone maintaining it, it would probably fail by the end of month. That's not considering the constant changes going into it.