{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/730/985/","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":"730-985","topic":"730","title":"Software","area":"Expenses","paragraphs":3,"summary":"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.","concepts":["research and development costs","computer software to be sold, leased, or otherwise marketed","technological feasibility","purchased computer software","cross-reference subtopic","software capitalization"],"categories":["Recognition","Intangibles and goodwill","Industry-specific"],"level":"introductory","topic_title":"Research and Development","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"730-985-05-1","para":"05-1","html":"
This Subtopic only provides links to guidance on research and development costs of computer software.
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Paragraph 985-20-25-1 specifies the treatment for costs incurred to establish the technological feasibility of a computer software product to be sold, leased, or otherwise marketed.
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for guidance regarding the cost of purchased computer software to be sold, leased, or otherwise marketed.
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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":["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."],"categories":["Recognition","Intangibles and goodwill","Industry-specific"],"audience_level":"introductory","student_note":"Know the navigation point: software R&D questions are answered in ASC 985-20, not in ASC 730 itself. 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