{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/45/#55-implementation-guidance-and-illustrations","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.","topic":"720","topic_title":"Other Expenses","subtopic":"720-45","subtopic_title":"Business and Technology Reengineering","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"720-45-55-1","para":"55-1","html":"
The following table sets forth the accounting for typical components of a business process reengineering/information technology transformation project based on whether the item should be:
  1. a
    Expensed as incurred in accordance with the guidance contained in this Subtopic
  2. b
    Expensed as incurred in accordance with internal-use software guidance contained in Subtopic 350-40
  3. c
    Capitalized in accordance with internal-use software guidance contained in Subtopic 350-40
  4. d
    Capitalized as part of the cost of acquiring a fixed asset in accordance with a company's existing policy.
(Note that letters in the grid refer to the corresponding guidance listed above.)
Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance:
350-40-65-4The following table sets forth the accounting for typical components of a business process reengineering/information technology transformation project based on whether the item should be:
  1. a
    Expensed as incurred in accordance with the guidance contained in this Subtopic
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2025-06.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2025-06.
  4. d
    Capitalized as part of the cost of acquiring a fixed asset in accordance with a company's existing policy
  5. e
    Capitalized or expensed in accordance with the internal-use software guidance contained in Subtopic 350-40.
(Note that letters in the grid refer to the corresponding guidance listed above.)
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