The FASB recently agreed at its meeting on Wednesday, Jan. 18, to study two new methods for companies to use in accounting for certain software costs, tentatively ruling out two other models, the CFO Dive website reports.
The board chose an initial development cost model requiring companies to capitalize on direct software development costs at the time of the probable completion of a project while incurring later expenses.
FASB received feedback on an “expense-all” option previously rejected at the meeting. Stakeholders indicated they were leery of the significant changes required by the expense-all alternative.
The topic is one of the major new agenda items the FASB board added to its key technical agenda.