ASC

ASC 350-985

Software

350 Intangibles—Goodwill and Other

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In brief

IntroductoryRecognitionIntangibles and goodwillIndustry-specific

ASC 350-985 is a link-only subtopic: it contains no substantive rules of its own but points readers to Subtopic 985-20 for the capitalization of computer software costs as intangible assets. Specifically, it directs users to 985-20-25-3 (costs of producing product masters incurred after technological feasibility is established) and 985-20-25-10 (purchased software having an alternative future use).

Key points (4)
  • This Subtopic only provides a link to guidance on costs of computer software that are capitalized as intangible assets (350-985-05-1).
  • Costs of producing product masters incurred after technological feasibility has been established are capitalized under paragraph 985-20-25-3 (350-985-25-1).
  • Costs of purchased software that has an alternative future use are capitalized under paragraph 985-20-25-10 (350-985-25-1).
  • No recognition, measurement, or disclosure requirements are established within 350-985 itself; the operative guidance resides in Topic 985.

For students. Don't look here for software accounting answers—350-985 is purely a cross-reference; the real rules for software to be sold, leased, or marketed are in 985-20 (and internal-use software is in 350-40). A common mistake is assuming this subtopic adds intangible-asset requirements for software beyond the Topic 985 guidance.

computer software costscapitalized software as intangible assetproduct masterstechnological feasibilitypurchased softwarealternative future uselink-only subtopic

Machine-generated study aid for ASC 350-985. Check the source paragraphs below.

350-985-00Status

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350-985-00-1
No updates have been made to this Subtopic.

350-985-05Overview and Background

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350-985-05-1
This Subtopic only provides a link to guidance on costs of computer software that are capitalized as intangible assets.

350-985-25Recognition

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350-985-25-1
Paragraph 985-20-25-3 addresses capitalizing costs of producing product masters incurred after establishing technological feasibility. Paragraph 985-20-25-10 addresses capitalizing the costs of purchased software that has an alternative future use.

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