{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/350/985/","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","number":"350-985","topic":"350","title":"Software","area":"Assets","paragraphs":3,"summary":"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).","concepts":["computer software costs","capitalized software as intangible asset","product masters","technological feasibility","purchased software","alternative future use","link-only subtopic"],"categories":["Recognition","Intangibles and goodwill","Industry-specific"],"level":"introductory","topic_title":"Intangibles—Goodwill and Other","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-985-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">No updates have been made to this Subtopic.</div></div>","snippet":"No updates have been made to this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be1fb46dff9fa1ed409f844e62c28ae7813679c02a2e68803da2af7e000a2753","downloaded_from":"2026-09-10T00:05:21.279Z","last_downloaded_at":"2026-09-10T00:05:21.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477928","source_sha256":"7e45e8f215cffb71be82b2286b7a6ec5ba7b338e7f070ad8b568775b8697a4c4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:039d4fcf74ac617b5cf4e76e40e1490b7f00b6a818ae354589909e1a528350ad","downloaded_from":"2026-09-10T00:05:21.279Z","last_downloaded_at":"2026-09-10T00:05:21.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477928","source_sha256":"7e45e8f215cffb71be82b2286b7a6ec5ba7b338e7f070ad8b568775b8697a4c4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:79fafbd57e7bd38ad042e07610f4c8adf10c2d60da926959b15d731afb4cc436","downloaded_from":"2026-09-10T00:05:21.279Z","last_downloaded_at":"2026-09-10T00:05:21.279Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477928","source_sha256":"7e45e8f215cffb71be82b2286b7a6ec5ba7b338e7f070ad8b568775b8697a4c4"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-985-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic only provides a link to guidance on costs of computer software that are capitalized as intangible assets.</div></div>","snippet":"This Subtopic only provides a link to guidance on costs of computer software that are capitalized as intangible assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c37ffc7b4f64497d2e77374a62f63ed7c57ab8a8ff509b0408b482d8f17216f5","downloaded_from":"2026-09-10T00:05:24.672Z","last_downloaded_at":"2026-09-10T00:05:24.672Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478960","source_sha256":"a01f605d5e68ad7ee3c55b660f7004f557c6f7705c183bdd92b801d8b2a390fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a75c25fb29e661dc683b96baf71927b4a1b8ad48674eb43a42f6dee4e5666238","downloaded_from":"2026-09-10T00:05:24.672Z","last_downloaded_at":"2026-09-10T00:05:24.672Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478960","source_sha256":"a01f605d5e68ad7ee3c55b660f7004f557c6f7705c183bdd92b801d8b2a390fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:843c9828e66a96e94e76236f384537e6f3d7075e80ae221c0b1224f5f3d1b08e","downloaded_from":"2026-09-10T00:05:24.672Z","last_downloaded_at":"2026-09-10T00:05:24.672Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478960","source_sha256":"a01f605d5e68ad7ee3c55b660f7004f557c6f7705c183bdd92b801d8b2a390fb"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-985-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraph <a href=\"/asc/985/20/#985-20-25-3\" class=\"xref\">985-20-25-3</a> addresses capitalizing costs of producing <a href=\"/glossary/p/#product-master\" class=\"term\" title=\"A completed version, ready for copying, of the computer software product, the documentation, and the training materials that are to be sold, leased, or otherwise marketed.\"><span>product masters</span></a> incurred after establishing technological feasibility. Paragraph <a href=\"/asc/985/20/#985-20-25-10\" class=\"xref\">985-20-25-10</a> addresses capitalizing the costs of purchased software that has an alternative future use.</div></div>","snippet":"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 ha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ecbdc9c94de2bca919cd13f554e8da1274ddcf547c388aff90731b8571c0680","downloaded_from":"2026-09-10T00:05:31.733Z","last_downloaded_at":"2026-09-10T00:05:31.733Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477356","source_sha256":"d245c8011a1bc6d8970a0e4e9ee791fe90284a373d73b0044bfd80da72434f17"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21dfc8e525d2fdfa1000ca1c154b4e04417754560ccb76a6e0f42b7849988d20","downloaded_from":"2026-09-10T00:05:31.733Z","last_downloaded_at":"2026-09-10T00:05:31.733Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477356","source_sha256":"d245c8011a1bc6d8970a0e4e9ee791fe90284a373d73b0044bfd80da72434f17"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ca55dd59b887a3329dded1d4cccdf820636efa71cfc2e002031c898ebb17bfa0","downloaded_from":"2026-09-10T00:05:31.733Z","last_downloaded_at":"2026-09-10T00:05:31.733Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477356","source_sha256":"d245c8011a1bc6d8970a0e4e9ee791fe90284a373d73b0044bfd80da72434f17"}}],"enrichment":{"summary":"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":["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."],"categories":["Recognition","Intangibles and goodwill","Industry-specific"],"audience_level":"introductory","student_note":"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.","related_topics":["985-20","350-40","350-30","730"],"key_concepts":["computer software costs","capitalized software as intangible asset","product masters","technological feasibility","purchased software","alternative future use","link-only subtopic"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ca9a81f006a93329fa58e525d12eaffe252bbd7790605856b779666039b3ffea","downloaded_from":"2026-09-10T00:05:21.279Z","last_downloaded_at":"2026-09-10T00:05:31.733Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"330-985","title":"Software","topic_title":"Inventory","score":0.8016,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61bfaed3f56ac04114840e4e482356a5e9c87b5b96449a5fac6306aa157a25ac","downloaded_from":"2026-09-09T23:53:59.630Z","last_downloaded_at":"2026-09-09T23:54:12.400Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"985-20","title":"Costs of Software to Be Sold, Leased, or Marketed","topic_title":"Software","score":0.7553,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c60138f7f994b30d29d7d76b9c49ef70c60d61ef2c69239300adf2ea4986f0ba","downloaded_from":"2026-09-10T02:28:26.033Z","last_downloaded_at":"2026-09-10T02:28:54.478Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"730-985","title":"Software","topic_title":"Research and Development","score":0.7377,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b954dc25664bde016586340620e20ec7bb4f30d488a3e5664adb4b5d5ff3b9df","downloaded_from":"2026-09-10T01:16:06.499Z","last_downloaded_at":"2026-09-10T01:16:08.583Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"705-985","title":"Software","topic_title":"Cost of Sales and Services","score":0.719,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef466da0452e77f567d9dde09026dd0d7c637457088361e0b48d0630c55f2501","downloaded_from":"2026-09-10T00:56:55.035Z","last_downloaded_at":"2026-09-10T00:57:08.857Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-40","title":"Internal-Use Software","topic_title":"Intangibles—Goodwill and Other","score":0.7137,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:da4f47d2368314d6ef6490af3f51292d08d6293d755cb64dc081c7f188151400","downloaded_from":"2026-09-10T00:02:14.508Z","last_downloaded_at":"2026-09-10T00:02:45.249Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"985-10","title":"Overall","topic_title":"Software","score":0.6767,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c80a87decafd5a3b38c9feba34ad1ac64bfe006f3ce2a5fd39124b4f97284bc5","downloaded_from":"2026-09-10T02:28:16.187Z","last_downloaded_at":"2026-09-10T02:28:23.457Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"350-980","title":"Regulated Operations","topic_title":"Intangibles—Goodwill and Other","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:887c97c895b0b29ddb65865ac9235182156e0a66b871ebc5ccc381d2daf1eb41","downloaded_from":"2026-09-10T00:05:12.805Z","last_downloaded_at":"2026-09-10T00:05:19.146Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"360-10","title":"Overall","topic_title":"Property, Plant, and Equipment","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3aae6c7564dc447c809cf4f3d6f1401a7cc6881c314553fb7d22156ae0061b61","downloaded_from":"2026-09-10T00:05:35.818Z","last_downloaded_at":"2026-09-10T00:06:33.252Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c65ffab08826133ff65fe4a910da449ea6831ec01540ae6dba49018c92cb87f","downloaded_from":"2026-09-10T00:05:21.279Z","last_downloaded_at":"2026-09-10T00:05:31.733Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}