Handbooks | August 2021

 

Insight

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.

Scott Muir

Scott Muir

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5073


Using Q&As and examples, this new guide explains in detail the accounting for costs of internal- and external-use software, cloud computing arrangements, and website development.

Applicability

  • ASC 350-40, ASC 350-50, ASC 985-20
  • All entities

Relevant dates 

  • Effective immediately

Key impacts

A single roadmap to accounting for software and website costs – helping you to compare and contrast the different models, including:

  • Internal-use software and cloud computing arrangement costs under ASC 350-40
  • Website development costs under ASC 350-50
  • External-use software costs under ASC 985-20

Report contents

  • Executive summary
  • Scope
  • Initial recognition and measurement: Internal-use software and cloud computing implementation costs
  • Initial recognition and measurement: Website development costs
  • Initial recognition and measurement: Software to be sold, leased or marketed
  • Subsequent measurement
  • Presentation
  • Disclosure
  • ASU 2018-15 effective dates and transition

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