{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/350/40/#35-subsequent-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"350","topic_title":"Intangibles—Goodwill and Other","subtopic":"350-40","subtopic_title":"Internal-Use Software","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Impairment","paragraphs":[{"citation":"350-40-35-1","para":"35-1","html":"
Impairment shall be recognized and measured in accordance with the provisions of Section 360-10-35, which requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The guidance is applicable, for example, when one of the following events or changes in circumstances occurs related to computer software being developed or currently in use indicating that the carrying amount may not be recoverable:
  1. a
    Internal-use computer software is not expected to provide substantive service potential.
  2. b
    A significant change occurs in the extent or manner in which the software is used or is expected to be used.
  3. c
    A significant change is made or will be made to the software program.
  4. d
    Costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software.
","snippet":"Impairment shall be recognized and measured in accordance with the provisions of Section 360-10-35, which requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62eec78c9edc49bf73963ca310e55a9f1ed7b959c7bb1d94f9cc77e8b500e692","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-2","para":"35-2","html":"
Paragraphs
360-10-35-47 through 35-49
requires that the asset be accounted for as abandoned when it ceases to be used.
","snippet":"Paragraphs 360-10-35-47 through 35-49 requires that the asset be accounted for as abandoned when it ceases to be used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:811cc5be26fe7609482392c7e9d19f60bf8564796b4baef7cad60a45eddede65","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-3","para":"35-3","html":"
When it is no longer probable that computer software being developed will be completed and placed in service, the asset shall be reported at the lower of the carrying amount or fair value, if any, less costs to sell. The rebuttable presumption is that such uncompleted software has a fair value of zero. Indications that the software may no longer be expected to be completed and placed in service include the following:
  1. a
    A lack of expenditures budgeted or incurred for the project.
  2. b
    Programming difficulties that cannot be resolved on a timely basis.
  3. c
    Significant cost overruns.
  4. d
    Information has been obtained indicating that the costs of internally developed software will significantly exceed the cost of comparable third-party software or software products, so that management intends to obtain the third-party software or software products instead of completing the internally developed software.
  5. e
    Technologies are introduced in the marketplace, so that management intends to obtain the third-party software or software products instead of completing the internally developed software.
  6. f
    Business segment or unit to which the software relates is unprofitable or has been or will be discontinued.
Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance:
350-40-65-4If the capitalization requirements in paragraphs
350-40-25-12 through 25-12A
are no longer met for software being developed, the asset shall be reported at the lower of the carrying amount or fair value, if any, less costs to sell. The rebuttable presumption is that such uncompleted software has a fair value of zero. Indications that the capitalization requirements in paragraphs
350-40-25-12 through 25-12A
are no longer met include the following:
  1. a
    A lack of expenditures budgeted or incurred for the project.
  2. b
    Programming difficulties that cannot be resolved on a timely basis.
  3. c
    Significant cost overruns.
  4. d
    Information has been obtained indicating that the costs of internally developed software will significantly exceed the cost of comparable third-party software or software products, so that management intends to obtain the third-party software or software products instead of completing the internally developed software.
  5. e
    Technologies are introduced in the marketplace, so that management intends to obtain the third-party software or software products instead of completing the internally developed software.
  6. f
    Business segment or unit to which the software relates is unprofitable or has been or will be discontinued.
","snippet":"When it is no longer probable that computer software being developed will be completed and placed in service, the asset shall be reported at the lower of the carrying amount or fair value, if any, less costs to sell. The…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23a761f212875f9ca648ae58bf687ff6f0b6aca7f3898abbcbe08abd0069adb8","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13aec5afee0f2cc1eb8b6cd2b607b2fee6ce84fd357c1c4cebdfef29694108b0","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"block":null,"heading":"Amortization","paragraphs":[{"citation":"350-40-35-4","para":"35-4","html":"
The costs of computer software developed or obtained for internal use shall be amortized on a straight-line basis unless another systematic and rational basis is more representative of the software's use.
","snippet":"The costs of computer software developed or obtained for internal use shall be amortized on a straight-line basis unless another systematic and rational basis is more representative of the software's use.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0bbf218affc2f26a18eda0ed36479af8c1164e2bda7ea7e78119a81e257cce0","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-5","para":"35-5","html":"
In determining and periodically reassessing the estimated useful life over which the costs incurred for internal-use computer software will be amortized, entities shall consider the effects of all of the following:
  1. a
    Obsolescence
  2. b
    Technology
  3. c
    Competition
  4. d
    Other economic factors
  5. e
    Rapid changes that may be occurring in the development of software products, software operating systems, or computer hardware and whether management intends to replace any technologically inferior software or hardware.
Given the history of rapid changes in technology, software often has had a relatively short useful life.
","snippet":"In determining and periodically reassessing the estimated useful life over which the costs incurred for internal-use computer software will be amortized, entities shall consider the effects of all of the following:\n(a) O…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33bda494596eec173a00956be5528d952e823d9986f7c65187c6febb13d5c2c8","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-6","para":"35-6","html":"
For each module or component of a software project, amortization shall begin when the computer software is ready for its intended use, regardless of whether the software will be placed in service in planned stages that may extend beyond a reporting period. For purposes of this Subtopic, computer software is ready for its intended use after all substantial testing is completed. If the functionality of a module is entirely dependent on the completion of other modules, amortization of that module shall begin when both that module and the other modules upon which it is functionally dependent are ready for their intended use.
","snippet":"For each module or component of a software project, amortization shall begin when the computer software is ready for its intended use, regardless of whether the software will be placed in service in planned stages that m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3767b47279c75c2ef10d44b12882cc68b228cd156946ef746966f58b1e04710b","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea35431f59f9567597cb34e6b3dcf8b8b254bb52bb05ea7496be195804bd9eb7","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"block":null,"heading":"Internal-Use Computer Software Subsequently Marketed","paragraphs":[{"citation":"350-40-35-7","para":"35-7","html":"
If, after the development of internal-use software is completed, an entity decides to market the software, proceeds received from the license of the computer software, net of direct incremental costs of marketing, such as commissions, software reproduction costs, warranty and service obligations, and installation costs, shall be applied against the carrying amount of that software.
","snippet":"If, after the development of internal-use software is completed, an entity decides to market the software, proceeds received from the license of the computer software, net of direct incremental costs of marketing, such a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64515612dcb79fd24a6c0f4b5af1c1e25b31fb5b0eadf6450bea2a7fc5ca49cb","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-8","para":"35-8","html":"
No profit shall be recognized until aggregate net proceeds from licenses and amortization have reduced the carrying amount of the software to zero. Subsequent proceeds shall be recognized as revenuein accordance with Topic 606 on revenue from contracts with customers or recognized as a gain in accordance with Subtopic 610-20 on derecognition of nonfinancial assets if the contract is not with a customer.
","snippet":"No profit shall be recognized until aggregate net proceeds from licenses and amortization have reduced the carrying amount of the software to zero. Subsequent proceeds shall be recognized as revenuein accordance with Top…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7823897b984ea9fe58a4862cbcd960732618313244586b49b937a70f8fc3e992","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-9","para":"35-9","html":"
If, during the development of internal-use software, an entity decides to market the software to others, the entity shall follow the guidance in Subtopic 985-20. Amounts previously capitalized under this Subtopic shall be evaluated at each balance sheet date in accordance with paragraph 985-20-35-4. Capitalized software costs shall be amortized in accordance with paragraphs
985-20-35-1 through 35-2
.
","snippet":"If, during the development of internal-use software, an entity decides to market the software to others, the entity shall follow the guidance in Subtopic 985-20. Amounts previously capitalized under this Subtopic shall b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de65a458e2e85f349f609cba8a7b322cb666ff5e7c8700ebd6a0311df763a9a4","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-10","para":"35-10","html":"
A pattern of deciding to market internal-use software during its development creates a rebuttable presumption that any software developed by that entity is intended for sale, lease, or other marketing, and thus is subject to the guidance in Subtopic 985-20.
","snippet":"A pattern of deciding to market internal-use software during its development creates a rebuttable presumption that any software developed by that entity is intended for sale, lease, or other marketing, and thus is subjec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1dd694b2a066aa6cbb47ae0cd92496873d2187050cf5241c5dbc832f003ae55e","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f9738869a55938fd775b9de0c763788c0eef1057e93feb1bde2743203f5ed8b","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"block":"Implementation Costs of a Hosting Arrangement That Is a Service Contract","heading":"Impairment","paragraphs":[{"citation":"350-40-35-11","para":"35-11","html":"
Impairment shall be recognized and measured in accordance with the provisions of Section 360-10-35 as if the capitalized implementation costs were a long-lived asset. That guidance requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The guidance is applicable, for example, when one of the following events or changes in circumstances occurs related to the hosting arrangement that is a service contract indicating that the carrying amount of the related implementation costs may not be recoverable:
  1. a
    The hosting arrangement is not expected to provide substantive service potential.
  2. b
    A significant change occurs in the extent or manner in which the hosting arrangement is used or is expected to be used.
  3. c
    A significant change is made or will be made to the hosting arrangement.
","snippet":"Impairment shall be recognized and measured in accordance with the provisions of Section 360-10-35 as if the capitalized implementation costs were a long-lived asset. That guidance requires that assets be grouped at the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31309bd29ba129d34f7432fbead4fd208b00ef563f0cf7368f986034e184c802","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-12","para":"35-12","html":"
Paragraphs
360-10-35-47 through 35-49
require that the asset be accounted for as abandoned when it ceases to be used. Implementation costs related to each module or component of a hosting arrangement that is a service contract shall be evaluated separately as to when it ceases to be used.
","snippet":"Paragraphs 360-10-35-47 through 35-49 require that the asset be accounted for as abandoned when it ceases to be used. Implementation costs related to each module or component of a hosting arrangement that is a service co…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dd9015e7d38ca88100f717f6b72d471e1de33aeede089a14a1a56ae373f46ba","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38755a6d5cc9431804fa7e03855da29dd653f1b15163be7b779d7a25713839a8","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"block":"Implementation Costs of a Hosting Arrangement That Is a Service Contract","heading":"Amortization","paragraphs":[{"citation":"350-40-35-13","para":"35-13","html":"
Implementation costs capitalized in accordance with the Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic shall be amortized over the term of the associated hosting arrangement, considering the guidance in paragraph 350-40-35-17, on a straight-line basis unless another systematic and rational basis is more representative of the pattern in which the entity expects to benefit from access to the hosted software. This Subsection considers the right to access the hosted software to be equivalent to actual use, which shall not be affected by the extent to which the entity uses, or the expectations about the entity's use of, the hosted software (for example, how many transactions the entity processes or expects to process or how many users access or are expected to access the hosted software).
","snippet":"Implementation costs capitalized in accordance with the Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic shall be amortized over the term of the associated hosting arr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7856d469de2a3f0c59905ce0e44d3db5ce37723249d177b2b8864e776f429ce4","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-14","para":"35-14","html":"
An entity (customer) shall determine the term of the hosting arrangement that is a service contract as the fixed noncancellable term of the hosting arrangement plus all of the following:
  1. a
    Periods covered by an option to extend the hosting arrangement if the entity (customer) is reasonably certain to exercise that option
  2. b
    Periods covered by an option to terminate the hosting arrangement if the entity (customer) is reasonably certain not to exercise that option
  3. c
    Periods covered by an option to extend (or not to terminate) the hosting arrangement in which exercise of the option is controlled by the vendor.
","snippet":"An entity (customer) shall determine the term of the hosting arrangement that is a service contract as the fixed noncancellable term of the hosting arrangement plus all of the following:\n(a) Periods covered by an option …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c82f0b959034de04b69b2a3051978a01be22a5e44759c64fcd04e0beb0ba1e1","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-15","para":"35-15","html":"
An entity (customer) shall periodically reassess the estimated term of the arrangement and shall account for any change in the estimated term as a change in accounting estimate in accordance with Topic 250 on accounting changes and error corrections.
","snippet":"An entity (customer) shall periodically reassess the estimated term of the arrangement and shall account for any change in the estimated term as a change in accounting estimate in accordance with Topic 250 on accounting …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e501028ce4ac3dba9d9cca073807c939a73204a3daf0852c41b09c8971b152e2","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-16","para":"35-16","html":"
An entity shall consider the effects of all the following when determining the term of the hosting arrangement in accordance with paragraph 350-40-35-14 and when reassessing the term of the hosting arrangement in accordance with paragraph 350-40-35-15:
  1. a
    Obsolescence
  2. b
    Technology
  3. c
    Competition
  4. d
    Other economic factors
  5. e
    Rapid changes that may be occurring in the development of hosting arrangements or hosted software
  6. f
    Significant implementation costs that are expected to have significant economic value for the entity (customer) when the option to extend or terminate the hosting arrangement becomes exercisable.
","snippet":"An entity shall consider the effects of all the following when determining the term of the hosting arrangement in accordance with paragraph 350-40-35-14 and when reassessing the term of the hosting arrangement in accorda…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9625adddbe989f57ddba7af8682eee4dad793eae0263b59f9a927b3696f06255","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},{"citation":"350-40-35-17","para":"35-17","html":"
For each module or component of a hosting arrangement, an entity shall begin amortizing the capitalized implementation costs related to the hosting arrangement that is a service contract when the module or component of the hosting arrangement is ready for its intended use, regardless of whether the overall hosting arrangement will be placed in service in planned stages that may extend beyond a reporting period. For purposes of this Subsection, a hosting arrangement (or a module or component of a hosting arrangement) is ready for its intended use after all substantial testing is completed. If the functionality of a module or component is entirely dependent on the completion of other modules or components, the entity shall begin amortizing the capitalized implementation costs related to that module or component when both that module or component and the other modules or components upon which it is functionally dependent are ready for their intended use.
","snippet":"For each module or component of a hosting arrangement, an entity shall begin amortizing the capitalized implementation costs related to the hosting arrangement that is a service contract when the module or component of t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15bdab143a0539c07345d158b7f66cf730a16d797fcaabc694d252358bbabd60","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed35e44e52b8dfac0ba5226f6151227f02ed416f167921253c5a5786a9ab918c","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:108a9b404df763d9fa6f9aa93015edc0a84a3b5e12649606069c0cb461a95803","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:108a9b404df763d9fa6f9aa93015edc0a84a3b5e12649606069c0cb461a95803","downloaded_from":"2026-09-10T00:02:32.106Z","last_downloaded_at":"2026-09-10T00:02:32.106Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482609","source_sha256":"f93a448fee062e75695dd4a819f7c8c1cf04a99f8aad835eddc8d881f27fcc87"}}