upgrades and enhancements

Assets2

1. 350-40Internal-Use Software350 Intangibles—Goodwill and Other

   ASC 350-40 governs the accounting for costs of computer software acquired, developed, or modified solely for an entity's internal needs (with no substantive plan to market it externally), and for implementation costs of hosting arrangements that are service contracts. Under current guidance, preliminary project stage costs and training/data conversion costs are expensed, while internal and external direct costs incurred during the application development stage are capitalized (350-40-25-1 through 25-6) once management authorizes and commits funding and completion is probable (350-40-25-12). Capitalized amounts are amortized straight-line beginning when the software is ready for its intended use (350-40-35-4 through 35-6) and tested for impairment under Section 360-10-35.

2. 350-50Website Development Costs350 Intangibles—Goodwill and Other

   ASC 350-50 tells you which website development costs get capitalized and which get expensed, organized by five stages: planning, application and infrastructure development, graphics development, content development, and operating. Planning-stage costs, content input costs, data conversion costs, and operating-stage costs are expensed as incurred; website software (including graphics, which are treated as a component of software) is capitalized under ASC 350-40 for internal-use software or ASC 985-20 if a plan exists to market the software externally, and domain registration costs are capitalized under ASC 350-30. The entire Subtopic is superseded by ASU 2025-06 effective for fiscal years beginning after December 16, 2027 (transition guidance in 350-40-65-4).