Internally Developed Software

Free CPA BAR (Business Analysis & Reporting) lesson in Technical Accounting and Reporting. 16 min read, ~2,405 words.

Internal-use software (ASC 350-40): capitalize costs incurred during 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; capitalize from that point until the product is available for general release. Capitalizable costs include direct labor, outside services, and...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• II.B1

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