# ASC 705-985-25: Cost of Sales and Services — Software — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/705/985/#25-recognition)

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## ASC 705-985-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/705/985/#25-recognition)

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#### Amortization of Capitalized Software Development Costs

##### [705-985-25-1](https://asc.understandingaccounting.org/asc/705/985/#705-985-25-1)

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Paragraph [985-20-45-1](https://asc.understandingaccounting.org/asc/985/20/#985-20-45-1) indicates that the amortization of capitalized costs to develop a software product that is marketed to others would be charged to cost of sales or a similar expense category.

#### Cost of Duplicating Software, Documentation, Training Materials, and Packaging

##### [705-985-25-2](https://asc.understandingaccounting.org/asc/705/985/#705-985-25-2)

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For guidance on costs incurred for duplicating the computer software, documentation, and training materials from product masters and for physically packaging the product for distribution, see Subtopic 985-330.

#### Costs to Keep Software Current with Hardware Revisions

##### [705-985-25-3](https://asc.understandingaccounting.org/asc/705/985/#705-985-25-3)

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For guidance on costs to keep certain software current with hardware revisions, see paragraphs

[985-20-55-11 through 55-12](https://asc.understandingaccounting.org/asc/985/20/#985-20-55-11)

.