# ASC 350-40-65: Intangibles—Goodwill and Other — Internal-Use Software — 65 Transition and Open Effective Date Information Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/40/#65-transition-and-open-effective-date-information) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:1b64d48da0ce6f79e53d7a752e8e16e2773fa59e27d35f8103f78a4e67df16cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/350/40/#65-transition-and-open-effective-date-information) SEC content: no ##### [350-40-65-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:6b8a3fae11132fc4772d3b5291edd813f810ddb2ee38b74635f2b2a235628759 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 10/26/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-05, _Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement_. ##### [350-40-65-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:132d4b75fdfa08306a2938cd6c111d1d0be86c0d9c99fef0c10b14f5a0a4f9d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/17/2019 after the end of the transition period stated in Accounting Standards Update No. 2016-19, _Technical Corrections and Improvements_. ##### [350-40-65-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:4b074ffb073ec11e75837523783bc4b2f8510a725c2d63e4c6725cd948690ecd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 12/14/2022 after the end of the transition period stated in Accounting Standards Update No. 2018-15, _Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract_. #### Transition Related to Accounting Standards Update No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ##### [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:effd04a6c0274316ae28c38acda994c408cba1c0f9858c2da95600b78b8fa052 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Accounting Standards Update 2025-06](https://asc.understandingaccounting.org/updates/asu-2025-06/) 2029-6-13 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 The following represents the transition and effective date information related to Accounting Standards Update No. 2025-06, _Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software_: **Effective date and early adoption** 1. a All entities shall apply the pending content that links to this paragraph for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. 2. b Early adoption of the pending content that links to this paragraph is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. If an entity adopts the pending content that links to this paragraph in an interim reporting period, it shall adopt the pending content as of the beginning of the annual reporting period that includes that interim reporting period. **Transition methods** 1. c An entity shall apply the pending content that links to this paragraph using one of the following transition methods: 1. 1 Prospectively to new software costs incurred for all projects, including costs incurred for in-process projects, during annual reporting periods (and interim reporting periods within those annual reporting periods) beginning after the date that the pending content that links to this paragraph is adopted. 2. 2 On a modified transition approach, as follows: 1. i Prospectively to new software costs incurred (for all projects, including costs incurred for in-process projects), excluding those described in (c)(2)(ii), during annual reporting periods (and interim reporting periods within those annual reporting periods) beginning after the date that the pending content that links to this paragraph is adopted. 2. ii For an in-process project that, as of the date that the pending content that links to this paragraph is adopted, the entity determines does not meet the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) but had met the capitalization requirements before that date, the entity shall derecognize capitalized costs for that in-process project through a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the annual reporting period in which the pending content that links to this paragraph is adopted. 3. 3 Retrospectively through a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the first period presented. **Transition disclosures** 1. d An entity that applies the pending content that links to this paragraph prospectively in accordance with (c)(1) shall provide the transition disclosures required by paragraph [250-10-50-1(a)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1) in both the interim reporting period (if applicable) and the annual reporting period of the change. 2. e An entity that applies the pending content that links to this paragraph using a modified transition approach in accordance with (c)(2) shall provide the transition disclosures required by paragraph [250-10-50-1(a)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1) and the cumulative effect of the change on retained earnings (or other components of equity or net assets in the statement of financial position) as of the beginning of the annual reporting period in which the pending content that links to this paragraph is adopted in both the interim reporting period (if applicable) and the annual reporting period of the change. 3. f An entity that applies the pending content that links to this paragraph retrospectively in accordance with (c)(3) shall provide the transition disclosures required by paragraph [250-10-50-1(a) through (b)(1)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1), (b)(2) for any prior periods retrospectively adjusted, and (b)(3) and (c)(2) in both the interim reporting period (if applicable) and the annual reporting period of the change.