Accounting for Software Sales
Author: Kelen Camehl
| CPE Credit: |
1 hour for CPAs |
This course provides an overview of the accounting for the costs of software to be sold, leased, or marketed. The accounting, reporting, and disclosure requirements related to this type of software is prescribed by ASC Topic 985-20. This course primarily addresses the concept of technological feasibility and how this impacts the cost classification of software development costs. The course also addresses the respective presentation and disclosure requirements.
This course is excluded from the following subscription programs:
Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.
Publication Date: March 2022
Topics Covered
- Introduction
- Scope
- Technological Feasibility
- Costs Incurred After Technological Feasibility
- Production Costs
- Inventroy Costs
- Purchased Software for Resale
- Funded Software Development Arrangements
- Amoritzation of Capitalized Costs
Learning Objectives
- Distinguish between the different areas of U.S. GAAP related to software
- 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
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour)
Program Prerequisites
None
Advance Preparation
None
