# ASC 350-50-55: Intangibles—Goodwill and Other — Website Development Costs — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/350/50/#55-implementation-guidance-and-illustrations)

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## ASC 350-50-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/350/50/#55-implementation-guidance-and-illustrations)

SEC content: no

#### Implementation Guidance

##### [350-50-55-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-1)

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The following guidance describes or provides examples of various activities that take place at different stages of website development. See Section 350-50-25 for the relevant accounting guidance.

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 350-50-55-1 will be superseded upon transition, together with its heading.</em></td></tr><tr><td class="entry">&gt; <strong class="ph b">Implementation Guidance</strong></td></tr></tbody></table>

[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)

##### [350-50-55-2](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-2)

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Planning stage activities include the following:

1.  a
    
    Develop a business, project plan, or both. This may include identification of specific goals for the website (for example, to provide information, supplant manual processes, conduct e-commerce, and so forth), a competitive analysis, identification of the target audience, creation of time and cost budgets, and estimates of the risks and benefits.
    
2.  b
    
    Determine the functionalities (for example, order placement, order and shipment tracking, search engine, email, chat rooms, and so forth) of the website.
    
3.  c
    
    Identify necessary hardware (for example, the server) and web applications. Web applications are the software needed for the website's functionalities. Examples of web applications are search engines, interfaces with inventory or other back-end systems, as well as systems for registration and authentication of users, commerce, content management, usage analysis, and so forth.
    
4.  d
    
    Determine that the technology necessary to achieve the desired functionalities exists. Factors might include, for example, target audience numbers, user traffic patterns, response time expectations, and security requirements.
    
5.  e
    
    Explore alternatives for achieving functionalities (for example, internal versus external resources, custom-developed versus licensed software, company-owned versus third-party-hosted applications and servers).
    
6.  f
    
    Conceptually formulate and/or identify graphics and content (see paragraphs
    
    [350-50-25-8 through 25-13](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-8)
    
    ).
    
7.  g
    
    Invite vendors to demonstrate how their web applications, hardware, or service will help achieve the website's functionalities.
    
8.  h
    
    Select external vendors or consultants.
    
9.  i
    
    Identify internal resources for work on the website design and development.
    
10.  j
     
     Identify software tools and packages required for development purposes.
     
11.  k
     
     Address legal considerations such as privacy, copyright, trademark, and compliance.
     

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 350-50-55-2 will be superseded upon transition, together with its heading.</em></td></tr><tr><td class="entry">• &gt; <strong class="ph b">Planning Stage</strong></td></tr></tbody></table>

[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)

##### [350-50-55-3](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-3)

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The website application and infrastructure development stage involves acquiring or developing hardware and software to operate the website. The activities in this stage include the following:

1.  a
    
    Acquire or develop the software tools required for the development work (for example, HTML editor, software to convert existing data to HTML form, graphics software, multimedia software, and so forth).
    
2.  b
    
    Obtain and register an internet domain name.
    
3.  c
    
    Acquire or develop software necessary for general website operations, including server operating system software, internet server software, web browser software, and internet protocol software.
    
4.  d
    
    Develop or acquire and customize code for web applications (for example, catalog software, search engines, order processing systems, sales tax calculation software, payment systems, shipment tracking applications or interfaces, email software, and related security features).
    
5.  e
    
    Develop or acquire and customize database software and software to integrate distributed applications (for example, corporate databases and accounting systems) into web applications.
    
6.  f
    
    Develop HTML web pages or develop templates and write code to automatically create HTML pages.
    
7.  g
    
    Purchase the web and application server(s), internet connection (bandwidth), routers, staging servers (where preliminary changes to the website are made in a test environment), and production servers (accessible to customers using the website). Alternatively, these services may be provided by a third party via a hosting arrangement.
    
8.  h
    
    Install developed applications on the web server(s).
    
9.  i
    
    Create initial hypertext links to other websites or to destinations within the website. Depending on the site, links may be extensive or minimal.
    
10.  j
     
     Test the website applications (for example, stress testing).
     

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 350-50-55-3 will be superseded upon transition, together with its heading.</em></td></tr><tr><td class="entry">• &gt; <strong class="ph b">Application and Infrastructure Development Stage</strong></td></tr></tbody></table>

[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)

##### [350-50-55-4](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-4)

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For purposes of this Subtopic, graphics involve the overall design of the web page (use of borders, background and text colors, fonts, frames, buttons, and so forth) that affect the look and feel of the web page and generally remain consistent regardless of changes made to the content.

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 350-50-55-4 will be superseded upon transition, together with its heading.</em></td></tr><tr><td class="entry">• &gt; <strong class="ph b">Graphics Development Stage</strong></td></tr></tbody></table>

[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)

##### [350-50-55-5](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-5)

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Graphics include the design or layout of each page (that is, the graphical user interface), color, images, and the overall look and feel and usability of the website. Creation of graphics may involve coding of software, either directly or through the use of graphic software tools. The amount of coding depends on the complexity of the graphics.

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/)

##### [350-50-55-6](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-6)

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Content refers to information included on the website, which may be textual or graphical in nature (although the specific graphics described in paragraph [350-50-55-4](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-4) are excluded from content). For example, articles, product photos, maps, and stock quotes and charts are all forms of content. Content may reside in separate databases that are integrated into (or accessed from) the web page with software, or it may be coded directly into the web pages.

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 350-50-55-6 will be superseded upon transition, together with its heading.</em></td></tr><tr><td class="entry">• &gt; <strong class="ph b">Content Development Stage</strong></td></tr></tbody></table>

[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)

##### [350-50-55-7](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-7)

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Content may be created or acquired to populate databases or web pages. Content may be acquired from unrelated parties or may be internally developed.

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/)

##### [350-50-55-8](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-8)

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Content is text or graphical information (exclusive of graphics described in paragraphs

[350-50-55-4 through 55-5](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-4)

) on the website which may include information on the entity, products offered, information sources that the user subscribes to, and so forth. Content may originate from databases that must be converted to HTML pages or databases that are linked to HTML pages through integration software. Content also may be coded directly into web pages.

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/)

##### [350-50-55-9](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-9)

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Costs incurred during the operating stage include training, administration, maintenance, and other costs to operate an existing website. Activities in the operating stage include the following:

1.  a
    
    Train employees involved in support of the website.
    
2.  b
    
    Register the website with internet search engines.
    
3.  c
    
    Perform user administration activities.
    
4.  d
    
    Update site graphics (for updates of graphics related to major enhancements, see \[h\]).
    
5.  e
    
    Perform regular backups.
    
6.  f
    
    Create new links.
    
7.  g
    
    Verify that links are functioning properly and update existing links (that is, link management or maintenance).
    
8.  h
    
    Add additional functionalities or features.
    
9.  i
    
    Perform routine security reviews of the website and, if applicable, of the third-party host.
    
10.  j
     
     Perform usage analysis.
     

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 350-50-55-9 will be superseded upon transition, together with its heading.</em></td></tr><tr><td class="entry">• &gt; <strong class="ph b">Operating Stage</strong></td></tr></tbody></table>

[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)