This course provides an overview of the accounting for software, including both internal-usesoftware as well as software that will be sold to third parties. The accounting, reporting, and disclosure requirementsrelated to software depends on the nature of the software, and whether it will be used internally by an entity or will be marketedto its customers. For internal-use software, the guidance is prescribed by ASC Topic 350-40. On the other hand, the guidance related to software to be marketed and sold is prescribed by ASC Topic 985-20.
Learning Objectives
Upon completion of this course, you will be able to:
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
- What is and is not Internal-Use Software?
Stages of Software Development
Commencement of Capitalization
Amortization
- Cloud-Based Arrangements
Internal-Use to External
Embedded Software
Technological Feasibility
Considerations with Multiple Modules
Allocation of Indirect Costs
Alternative Future Use
Software for Resale Disclosure Requirements (ASC 985-20)
