Internally Developed Software

Free CPA BAR (Business Analysis & Reporting) lesson in Technical Accounting and Reporting. 16 min read, ~2,458 words.

Internal-use software (ASC 350-40): capitalize costs in the application development stage; expense preliminary-project and post-implementation costs. Software for sale (ASC 985-20): expense all costs until technological feasibility is established, then capitalize until the product is available for general release. Capitalizable costs include direct labor, outside services, and interest during development...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• II.B1

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