# ASC 350-985: Intangibles—Goodwill and Other — Software

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/350/985/)

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.

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## ASC 350-985: Intangibles—Goodwill and Other — Software

### Machine-generated study aids

```json
{
  "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"
  ]
}
```

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## ASC 350-985-00: 00 Status

[Read section](https://asc.understandingaccounting.org/asc/350/985/#00-status)

SEC content: no

##### [350-985-00-1](https://asc.understandingaccounting.org/asc/350/985/#350-985-00-1)

Pending content: no

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No updates have been made to this Subtopic.

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## ASC 350-985-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/350/985/#05-overview-and-background)

SEC content: no

##### [350-985-05-1](https://asc.understandingaccounting.org/asc/350/985/#350-985-05-1)

Pending content: no

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

Source downloaded (UTC): 2026-09-10T00:05:31.733Z to 2026-09-10T00:05:31.733Z

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## ASC 350-985-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/350/985/#25-recognition)

SEC content: no

##### [350-985-25-1](https://asc.understandingaccounting.org/asc/350/985/#350-985-25-1)

Pending content: no

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Paragraph [985-20-25-3](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-3) addresses capitalizing costs of producing [product masters](https://asc.understandingaccounting.org/glossary/p/#product-master "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.") incurred after establishing technological feasibility. Paragraph [985-20-25-10](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-10) addresses capitalizing the costs of purchased software that has an alternative future use.