What's inside
- A five-question decision flow, with the capitalize and expense answer for each and the rule behind it.
- A quick reference of nine spend types, from SaaS subscriptions to major enhancements, with the typical treatment.
- A table of what each treatment does to the P&L in the year of spend and after, and to the balance sheet.
- Six questions to take to finance, including the capitalization threshold, useful life and time tracking.
- A note on the standards: ASC 350-40, ASU 2018-15 and ASC 730 under US GAAP, and IAS 38 under IFRS.
Format: PDF (3 pages).
How to use it
Work through it before booking a software cost, then confirm the treatment with finance and your auditors.
Get the reference guide
It is free. We email the download link to your work address.