# ASC 985-20-05: Software — Costs of Software to Be Sold, Leased, or Marketed — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 985-20-05: 05 Overview and Background

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##### [985-20-05-1](https://asc.understandingaccounting.org/asc/985/20/#985-20-05-1)

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This Subtopic specifies standards of financial accounting and reporting for the costs of computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, whether internally developed and produced or purchased.

##### [985-20-05-2](https://asc.understandingaccounting.org/asc/985/20/#985-20-05-2)

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This Subtopic identifies the costs incurred in the process of creating a software product that are research and development costs and those that are production costs to be capitalized, and it specifies amortization, disclosure, and other requirements.