Internally developed software accounting implications

There are times companies may have to make a decision of whether they should purchase software from an outside party or develop software internally to meet their operational needs. If companies choose internally developed software, they should at least be aware of the accounting implications because, when you develop the software internally, some of these …

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Accounting for Software Development Costs

Many companies develop software internally to sell to others. But which costs are research and development expenses and which costs can be capitalized and then amortized? Technological feasibility is what separates these two costs and once determined, dictates the accounting treatment. What is technological feasibility and when does it occur? This occurs when the program …

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