# ASC 350-50-25: Intangibles—Goodwill and Other — Website Development Costs — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/50/#25-recognition) 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): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:dd0ad1376c46523d06f16e64a5240692b3486e82cbcfec6de94bda4e235b68f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/50/#25-recognition) SEC content: no ##### [350-50-25-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:2751c098ea559ed34b27c177585aca2c298d3e186c4a9af0f5ebbe69dab361b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Section refers to various website development stages. See Section 350-50-55 for details regarding the types of costs and activities incurred during those stages. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Planning Stage ##### [350-50-25-2](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:3ef2f5da19a1bb239f7264f00f588ee23b48e20abd2fe0e9f2a311b3cb44e409 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of whether the website planning activities specifically relate to software, all costs incurred in the planning stage shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-2 will be superseded upon transition, together with its heading.
> Costs Incurred in the Planning Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Website Application and Infrastructure Development Stage ##### [350-50-25-3](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:4dc878e2ca0a7023a95bc698635c160a49d34829358a4d09627cc8e7895dc7ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The discussion of website application and infrastructure development assumes that any software is developed for the entity's internal needs and no plan exists or is being developed to market the software externally. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-3 will be superseded upon transition, together with its heading.
> Costs Incurred in the Website Application and Infrastructure Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-4](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:24e02d6ce614a2ea70390dacd42587485874ff11bc5c03da7d4393174b8fefda Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All costs relating to software used to operate a website shall be accounted for under Subtopic 350-40 unless a plan exists or is being developed to market the software externally. Software for which a plan exists or is being developed to market the software externally is subject to Subtopic 985-20, and costs associated with the development of that software shall be expensed until technological feasibility is established. See paragraph [985-20-25-2](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-2). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-5](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-5) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:236c55a491d6fe4dcc467c38e7b8f046a14624b172c0c66a8a7ff49e300f9e36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees incurred for website hosting, which involve the payment of a specified, periodic fee to an internet service provider in return for hosting the website on its server(s) connected to the internet, generally are expensed over the period of benefit. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-6](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:55ca66111a8d375b982fb54d780d25c97d351552bb28df60367d625702bee00b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred to purchase software tools, or costs incurred during the application development stage for internally developed tools, shall be capitalized unless they are used in research and development and meet either of the following conditions: 1. a They do not have any alternative future uses. 2. b They are internally developed and represent a pilot project or are being used in a specific research and development project (see paragraph [350-40-15-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-7)). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-7](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:93c83f1439be8b1f82ad4de861325d0fa94a787e16ba2a7168154fa4b9d4113f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to obtain and register an internet domain shall be capitalized under Section 350-30-25. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Graphics Development Stage ##### [350-50-25-8](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:b9b64fca83dbfcd0587ca6a1d087272698911bcb1794d201b34776c699c01cc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Graphics are a component of software. The costs of developing initial graphics shall be accounted for under Subtopic 350-40 for internal-use software, and Subtopic 985-20 for software marketed externally. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-8 will be superseded upon transition, together with its heading.
> Costs Incurred in the Graphics Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-9](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-9) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:eef831a426849ae7b3155b5f306d10852e74ce30f2f11e70f54b9567a6057b60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Modifications to graphics after a website is launched shall be evaluated to determine whether the modifications represent maintenance or enhancements of the website. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Content Development Stage ##### [350-50-25-10](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-10) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:a4cd008080713716029eeabab1bbad7eec2a974922dd30acc861fe4fee9e7d25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting for website content involves issues that also apply to other forms of content or information that are not unique to websites. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-10 will be superseded upon transition, together with its heading.
> Costs Incurred in the Content Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-11](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-11) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:70b43bc58848b3dff642c2881880f74ce80789e42f1865d3e914fb282888bbf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to input content into a website shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-12](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-12) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:2624005c4c7bb7e3824900bcbd054eb7a6762e7bb8d2c5192518f6a3facfb1a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Software used to integrate a database with a website shall be capitalized under paragraphs [350-40-25-2 through 25-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-2) . Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-13](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-13) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:9d04d0f8f0fd8787eb45b68e5e1f059a86c18f63f1411f74783afd977fea5d6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Data conversion costs shall be expensed as incurred (see paragraph [350-40-25-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-5)). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Operating Stage ##### [350-50-25-14](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-14) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:ced65af8dd9e0c742d40fefa550c4cb3c5e68558517b2e7d5b25b4adea8e1af4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of operating a website shall not be accounted for differently from the costs of other operations; that is, those costs shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-14 will be superseded upon transition, together with its heading.
> Costs Incurred in the Operating Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-15](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-15) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:66b37dc9cfe3d715b48fb19adcf273814a0116d4853f0daff92f0e0c6b81f38c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred in the operation stage that involve providing additional functions or features to the website shall be accounted for as, in effect, new software. That is, costs of upgrades and enhancements that add functionality shall be expensed or capitalized based on the general model of paragraph [350-40-25-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-7) (which requires certain costs relating to upgrades and enhancements to be capitalized if it is probable that they will result in added functionality) or, for software that is marketed, paragraphs [985-20-25-3 through 25-4](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-3) (which apply a software capitalization model to product enhancements, which include improvements that extend the life or significantly improve the marketability of a product). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-16](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-16) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:62bda0a2f2a16112532f95e67d516cf2efeed0f0d6c51c18e3f8f00feac17d3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of whether a change to website software results in an upgrade or enhancement (if internal-use software), or a product enhancement (if externally marketed software), is a matter of judgment based on the specific facts and circumstances. Paragraph [350-40-25-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-10) states that entities that cannot separate internal costs on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements shall expense such costs as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-17](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-17) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:c2c0ac19a55f708c4806ffab598a8880600f9fde029142b19e6a30c90856990c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to register the website with internet search engines represent advertising costs and shall be expensed as incurred under paragraph [720-35-25-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)