This course provides an overview of the accounting for internal-use software. The accounting and reporting requirements related to internal-use software can be found within ASC Topic 350-40. The primary information addressed within this ASC Topic relates to the development costs that should and should not be capitalized, how those costs are amortized, how they are tested for impairment, as well as presentation and disclosure requirements.
Learning Objectives
- Distinguish between software that is considered internal-use and not considered internal-use
- Recognize how implementation costs are accounted for in various stages of software development
- Identify when capitalization and amortization should commence
- Recognize how implementation costs of hosting arrangements are accounted for differently
Major Topics
- Development costs that should and should not be capitalized
- How these costs are amortized and how they are tested for impairment
- Presentation and disclosure requirements
