Overview
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Hosting Arrangement Considerations
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From Internal-Use to External Sales
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Costs Incurred After Technological Feasibility
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Types of Production Costs – FASB ASC Master Glossary
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Purchased Software – No Alternative Future Use
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Impairment Considerations - PwC
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Disclosure Requirements - Intangibles
Course Description
The software can often be thought of as existing within two different buckets. The first bucket is internal-use software, this type of software is not intended to be sold to customers. The U.S. GAAP guidance with respect to internal-use software is prescribed by ASC Topic 350-40. The second bucket is software that is intended to be sold, leased, or marketed, this software is developed to be sold for profit to a customer.
This Online CPE course addresses the concept of technological feasibility and how this impacts the cost classification of software development costs. This Online CPE Course focuses on those costs that are incurred to bring that software to a point where it can be sold to a customer. From that point, the revenue recognition guidance applicable to all contracts with customers takes over.
This CPE Course provides an overview of the accounting, reporting, and disclosure requirements related to software sales as prescribed by ASC Topic 985-20.
This Online Accounting CPE course includes following key topics:
- Scope of ASC Topic 985-20.
- Technological Feasibility
- Costs Incurred After Technological Feasibility
- Production and Inventory Cost
- Purchased Software for Resale
- Funded Software Development Arrangements
Learning Objectives
- To differentiate between the different areas of U.S. GAAP related to software
- To recognize software that is within the scope of ASC Topic 985-20
- To identify how software costs are recorded before and after establishing technological feasibility
- To identify general disclosure requirements related to software for resale
- To recognize how amortization is recorded for capitalized software cost