ASC 730-10-25 requires that all R&D costs be recognized as an expense as incurred. However, some costs associated with R&D activities that have an alternative future use (e.g., materials, equipment, facilities) may be capitalizable. “Research” is the planned search or critical ...
Capital Expenditure: Capital expenditure is not expensed in the period in which it incurs. Their recognition is deferred to future years through depreciation and amortization. They involve huge amounts and are seen on the balance sheet as fixed assets. ...
External use software is software that is to be sold or marketed to external users and is more subjective when it comes to capitalized software. Costs may generally be capitalized once the software is considered feasible. Since this point is so subjective, we recommend consulting with accounting p...
As I read the literature relative to capitalizing vs expensing these development costs, it appears to me that the issue boils down to functionality. Will this new viewer add functionality? Our web site will have the same functionality as it does now. The viewer allows for greater exposure becau...
future upgrades and enhancements. Such costs should be allocated among all individual elements, with allocations based on objective evidence of fair value of the contract elements, not necessarily the separate prices for each element stated in the contract, and then capitalized and expensed accor...
While the overall debt obligation of each financial entity will be displayed in a more complete presentation, this proposed accounting regulation will result in additional costs, reduced efficiency, and manufactured uncertainty for the primary users of the financial statements. Balance Sheet Presentation...