Scope
- The new guidance would apply to internal- and external-use software.
Defining Issues | September 2023
FASB made tentative decisions on software cost recognition and next steps for its project staff.
The Board reached tentative decisions about when software development costs should be recognized under a new, single cost accounting model that would apply to both internal- and external-use software.
At the same time, the Board also instructed its staff to both: (1) perform additional investor outreach to better understand what information software company investors would find useful and (2) consider a narrower project scope that would principally update the software cost accounting guidance for modern, agile software development methods.
Subject to the Board continuing with a new, single accounting model for internal- and external-use software costs (see "Next steps' below):
The Board directed the staff to:
Handbook: Revenue for software and SaaS
Latest edition: Our updated guide to applying ASC 606 to software & SaaS contracts, with comparisons to legacy US GAAP.
FASB issues proposed ASU on crypto asset accounting
FASB proposes new US GAAP Subtopic on accounting, reporting and disclosure of in-scope crypto assets.
FASB asked to modernize software cost guidance
Preparers, others suggest improvements to software development costs guidance for internal- and external-use software.
Handbook: Software and website costs
KPMG in-depth guide to accounting for software and website costs under ASC 350-40, ASC 350-50 and ASC 985-20.
Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.
Access our accounting research website for additional resources for your financial reporting needs.