i) Capitalised Development Costs:
Xero had capitalised the expenses experienced during developing its software.
The expense was amortised over the programs projected useful life of the program. The estimation of the value of the program developed within the company was found judgemental and it was estimated on the basis of the time that the staffs had spent during the development. So, this cost was found to be regarded as capitalised cost in the financial statements.

ii) Impairment of Capitalised Development costs
For Xero, intangible assets comprised of 86% of the non-current assets and these were capitalised as development cost. But, the intangibles to be assessed for impairment requires limited lifetime and the assessment were found to be estimated by decision.