This course provides an overview of the accounting for software, including both internal-use software as well as software that will be sold to third parties. The accounting, reporting, and disclosure requirements related to software depends on the nature of the software, and whether it will be used internally by an entity or will be marketed to its customers. For internal-use software, the guidance is prescribed by ASC Topic 350-40. On the other hand, the guidance related to software to be marketed and sold is prescribed by ASC Topic 985-20.

Learning Objectives
  • Discover and distinguish between software that is considered internal-use and not considered internal-use.
  • Recognize how implementation costs are accounted for in various stages of software development.
  • Identify when capitalization and amortization should commence.
  • Recognize how implementation costs of hosting arrangements are accounted for differently.
  • Recognize software that is within the scope of ASC Topic 985-20.
  • Identify how software costs are recorded prior to and after establishing technological feasibility.
  • Recognize how amortization is recorded for capitalized software costs.
  • Identify general disclosure requirements related to software for resale.
Last updated/reviewed: March 20, 2024
4 Reviews (29 ratings)

Reviews

4
Member's Profile
Great informative course. However, it is practically identical to the other course by the same presenter; "Accounting for software - Internal use and External sales".

4
Member's Profile
This was not as clear as some of the other courses. I struggled with keeping concepts straight between Internal use and for sale.

5
Anonymous Author
This was another good one. I have taken most of the courses in the series and I am completely satisfied with them.

5
Member's Profile
Kelen’s course on Software Hot topics was well prepared

Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
COURSE MATERIAL
  GAAP Hot Topics - What You Need to Know Chapter 6: Accounting for Software PDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam