# ASC 350-50: Intangibles—Goodwill and Other — Website Development Costs Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/50/) 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): 2026-09-10T00:02:49.004Z to 2026-09-10T00:03:06.009Z Record version: sha256:60210408c70e8039074f7af7e835e7c0a757af1e8684b171ff785233f89ee961 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50: Intangibles—Goodwill and Other — Website Development Costs ### Machine-generated study aids ```json { "summary": "ASC 350-50 tells you which website development costs get capitalized and which get expensed, organized by five stages: planning, application and infrastructure development, graphics development, content development, and operating. Planning-stage costs, content input costs, data conversion costs, and operating-stage costs are expensed as incurred; website software (including graphics, which are treated as a component of software) is capitalized under ASC 350-40 for internal-use software or ASC 985-20 if a plan exists to market the software externally, and domain registration costs are capitalized under ASC 350-30. The entire Subtopic is superseded by ASU 2025-06 effective for fiscal years beginning after December 16, 2027 (transition guidance in 350-40-65-4).", "key_points": [ "All costs incurred in the planning stage are expensed as incurred, regardless of whether the planning activities relate to software (350-50-25-2).
", "Software used to operate a website is accounted for under Subtopic 350-40 (internal-use software) unless a plan exists or is being developed to market it externally, in which case Subtopic 985-20 applies and costs are expensed until technological feasibility is established (350-50-25-4; 985-20-25-2).", "Website hosting fees paid periodically to an internet service provider are generally expensed over the period of benefit (350-50-25-5); costs of hardware and servers are outside the Subtopic's scope (350-50-15-3).", "Purchased software tools, and internally developed tools during the application development stage, are capitalized unless used in research and development with no alternative future use or as a pilot/specific R&D project (350-50-25-6); costs to obtain and register an internet domain are capitalized under Section 350-30-25 (350-50-25-7).", "Graphics are a component of software: initial graphics development follows 350-40 or 985-20, and post-launch graphics modifications must be evaluated as either maintenance or enhancements (350-50-25-8 through 25-9).", "Costs to input content and data conversion costs are expensed as incurred, but software that integrates a database with the website is capitalized under 350-40-25-2 through 25-4 (350-50-25-11 through 25-13).", "Operating-stage costs are expensed as incurred (350-50-25-14), except upgrades and enhancements that add functionality, which are capitalized under the general model of 350-40-25-7 (or 985-20-25-3 through 25-4 for marketed software); costs to register the website with search engines are advertising costs expensed under 720-35-25-1 (350-50-25-15, 25-17)." ], "categories": [ "Recognition", "Intangibles and goodwill", "Subsequent measurement", "Transition and effective dates" ], "audience_level": "intermediate", "student_note": "Exam questions test the stage-by-stage capitalize/expense pattern: planning and operating costs are expensed, application/infrastructure and graphics software costs are capitalized. The most common misunderstanding is treating graphics and content alike—graphics are software (capitalizable), while costs to input content and convert data are always expensed. Note this Subtopic is superseded by ASU 2025-06 for periods beginning after December 16, 2027.", "related_topics": [ "350-40", "985-20", "350-30", "720-35", "730" ], "key_concepts": [ "website development stages", "planning stage costs", "application and infrastructure development stage", "graphics development", "content development", "operating stage costs", "internal-use software capitalization", "upgrades and enhancements" ] } ``` Source downloaded (UTC): 2026-09-10T00:02:49.004Z to 2026-09-10T00:02:49.004Z Record version: sha256:725ead8cf6320bdec84a6dc7cf67fbe51c7a53d6430cd6085c0da1201a73123d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/50/#00-status) SEC content: no ##### [350-50-00-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:49.004Z to 2026-09-10T00:02:49.004Z Record version: sha256:c67dd3f8ef5098930d2534186c51a922b6a6ae4937fe28d14bd1ae78307bfba3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
350-50-05-1SupersededAccounting Standards Update No. 2025-0609/18/2025
350-50-15-1 through 15-3
SupersededAccounting Standards Update No. 2025-0609/18/2025
350-50-25-1 through 25-17
SupersededAccounting Standards Update No. 2025-0609/18/2025
350-50-55-1 through 55-9
SupersededAccounting Standards Update No. 2025-0609/18/2025
Source downloaded (UTC): 2026-09-10T00:02:51.519Z to 2026-09-10T00:02:51.519Z Record version: sha256:51ffaca65f7f74d7bddf66e200ce1d46562c4f8dd0acdcac415b2d606f959820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/50/#05-overview-and-background) SEC content: no ##### [350-50-05-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-05-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:51.519Z to 2026-09-10T00:02:51.519Z Record version: sha256:9c3ebcf4ab134863db3c82a90a91d4fb1c93b04f95600a1a3a7ce590f2acd113 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for costs incurred to develop a website, including whether to capitalize or expense the following types of costs: 1. a Costs incurred in the planning stage 2. b Costs incurred in the website application and infrastructure development stage 3. c Costs incurred to develop graphics 4. d Costs incurred to develop content 5. e Costs incurred in the operating stage. 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/) Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:01ccd840a1204f5cfa2b0b6ca15621329463ffde9e75c4a87b02cbda68ea5f96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/50/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-50-15-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-15-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:9540c3396317d37b85796d7cf246a852739f1bd96e5d3124da0a38c26f1419f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications noted below. 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 350-50-15-1 will be superseded upon transition, together with its heading.
> Overall Guidance
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Transactions ##### [350-50-15-2](https://asc.understandingaccounting.org/asc/350/50/#350-50-15-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:c26a9262391011f956ae8c7f35b464ad607770b17079608f18d9a8a336915a4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following transactions and activities: 1. a Costs incurred to develop a 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)
Editor's Note: Paragraph 350-50-15-2 will be superseded upon transition, together with its heading.
> Transactions
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-15-3](https://asc.understandingaccounting.org/asc/350/50/#350-50-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:5e1b1dca96e8a8c6f647a3b4e433d297605512969cc98ca4723c0544b0847c00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a The cost of hardware 2. b Acquisitions of servers and related hardware infrastructure. 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/) 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/) Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:8692e10222a21863afa21bf595adcf7a6a4cfc76ac3e10c259f7a04047097f3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## 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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:9d5b8f5045d773acb9b4bd5ff8c7985439b5392cbf1ff816fc4e2a1608f722e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)
Editor's Note: Paragraph 350-50-55-1 will be superseded upon transition, together with its heading.
> Implementation Guidance
[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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:d4b693c71840b6cdcab35a2ef2823cf4bdfb53191802794062440ede0b50f0af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)
Editor's Note: Paragraph 350-50-55-2 will be superseded upon transition, together with its heading.
• > Planning Stage
[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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:dc28cb390dd71d0fe352382dba4cab38be2ea1d66e4cfea74fc25ad100ae591c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)
Editor's Note: Paragraph 350-50-55-3 will be superseded upon transition, together with its heading.
• > Application and Infrastructure Development Stage
[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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:326ad24aae34468ba619a6df6c8d624866c3fee9a85483588b9a0f44beb23a2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)
Editor's Note: Paragraph 350-50-55-4 will be superseded upon transition, together with its heading.
• > Graphics Development Stage
[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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:f7c28ab6d2c36fc49462ddbc575856b8089a545b61a564b7b9e894f9405d8875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:fbcb947ee22cc8f6a34c715975f446258424af46725be194e00df9e5e50408fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)
Editor's Note: Paragraph 350-50-55-6 will be superseded upon transition, together with its heading.
• > Content Development Stage
[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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:06f7e3e22559509a832d3a2c894dd90feea65d11c11f2d24e2b5706d9640843e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:c8e1bbcde1d35c3e8bf8e7e77e201b4df210175225c90fde3c259af3ab4af90b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:56d4782633c5fbf5ae391856c265aec94f1aa00ad481603e501c84ff84c7328f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)
Editor's Note: Paragraph 350-50-55-9 will be superseded upon transition, together with its heading.
• > Operating Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/)