ASC 730-985
Software
730 Research and Development
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ASC 730-985 is a "link" subtopic: it contains no substantive rules of its own but points readers from the research and development Topic to the software guidance. It directs users to 985-20-25-1 for costs incurred to establish the technological feasibility of software to be sold, leased, or otherwise marketed, and to 985-20-25-8 through 25-10 for the cost of purchased software to be marketed.
Key points (4)
- This Subtopic only provides links to guidance on research and development costs of computer software (730-985-05-1).
- Paragraph 985-20-25-1 governs the treatment of costs incurred to establish the technological feasibility of a computer software product to be sold, leased, or otherwise marketed (730-985-25-1).
- Paragraphs 985-20-25-8 through 25-10 govern the cost of purchased computer software to be sold, leased, or otherwise marketed (730-985-25-2).
- Because the Subtopic is purely a cross-reference, no recognition, measurement, or disclosure requirements originate here.
For students. Know the navigation point: software R&D questions are answered in ASC 985-20, not in ASC 730 itself. The common misunderstanding is thinking ASC 730 sets a separate rule for software costs — it simply expenses costs until technological feasibility is established under 985-20.
Machine-generated study aid for ASC 730-985. Check the source paragraphs below.
730-985-05Overview and Background
Source downloaded: .Record version 1d0974898e2c. Effective date must be checked in the source.
730-985-25Recognition
Source downloaded: .Record version cfb08052770e. Effective date must be checked in the source.