SOFTWARE Flashcards
WHAT IS MEANT BY TECHNOLOGICAL FEASIBILITY OF A SOFTWARE?
WHEN PROGRAM/WORKING MODEL IS COMPLETE
HOW ARE SOFTWARE PRODUCTION COSTS ACCOUNTED FOR BY US GAAP?
CAPITALIZED TO INVENTORY AND EXPENSED TO COSTS OF GOODS SOLD.
THEY ARE EXPENSED UNTIL THEY REACH TECHNOLOGICAL FEASIBILITY. AT THAT TIME THEY ARE CAPITALIZED
HOW ARE SOFTWARE PRODUCTION COSTS ACCOUNTED FOR BY IFRS?
RESEARCH is EXPENSED
DEVELOPMENT COSTS ARE CAPITALIZED.
WHEN CAN TECHNOLOGICAL COSTS BE CAPITALIZED?
WHEN THE PROGRAM OR MODEL IS COMPLETE BUT NOT ON THE MARKET
US GAAP ACCOUNTING WHEN AT THE STAGE OF : TECHNOLOGICAL FEASIBILITY
CAPITALIZED
US GAAP ACCOUNTING WHEN AT THE STAGE OF: RESEARCH AND DEVELOPMENT
EXPENSED
US GAAP ACCOUNTING STAGE WHEN THE PRODUCT IS ON THE MARKETED OF USED
DEPRECIATED
CLOUD COMPUTING SOFTWARE COSTS
1) ACQUISITION OF A LICENSE SHOULD BE CAPITALIZED
2) A SERVICE CONTRACT SHOULD BE EXPENSED.
CRITERIA FOR SOFTWARE LICENSING
THE CUSTOMER HAS THE CONTRACTUAL RIGHTS TO TAKE POSSESSION OF THE SOFTWARE AT ANY TIME WITHOUT SIGNIFICANT PENALTY.
In order to be capitalized, costs must enhance the value to the capitalized asset not the employee.
Training costs are expensed.
NET REALIZABLE VALUE
WAY TO EVALUATE ITEMS LEFT IN INVENTORY.
GENERALLY CALCULATED AS SELLING PRICE - SELLING COSTS.
