These are generally broken down into the following sub-topics:
- Cost of software to be sold, leased, or marketed
- Intangibles such as Goodwill
- Revenue recognition
- Cost of sales and services
- Research and Development
- Nonmonetary transactions
As an accountant, dealing with computer software in these different categories is different than dealing with other types of products and projects mostly due to the attempts laid out to clarify the boundaries of certain gray areas. Since software is a relatively new type of asset (compare to things such as land, buildings, etc. which have been accounted a certain way for years) it is important that standards be set consciously rather than allowing the industry to establish them in ways that may not be as transparent as investors would like.
For more in depth information on this and other FASB ASC topics, check out the following books.
Accounting made easy, for FREE!
Access the contact form and send us your feedback, questions, etc. We are always welcome to help someone out. You can also contact us if you wish to submit your writing, cartoons, jokes, etc. and we will consider posting them to share with the world! The Facebook and LinkedIn groups are also good areas to find people interested in accounting like yourself, don’t hesitate to join as everyone of all levels are welcome to become part of the community.