Accounting for Software – Internal Use and External Sales
This course provides an overview of the accounting for the costs of software to be sold, leased, or marketed. The accounting, reporting, and disclosure requirements related to this type of software is prescribed by ASC Topic 985-20. This course primarily addresses the concept of technological feasibility and how this impacts the cost classification of software development costs. The course also addresses the respective presentation and disclosure requirements.

Course Publication Date: March 22, 2022

This course is available with NO ADDITIONAL FEE if you have an active self study membership or all access membership or can be purchased for $25.00!

Author:Kelen Camehl
Course No:ACT-SOFTSALIE-8322
Recommended CPE:2.50
Delivery Method:QAS Self Study
Level of Knowledge:Overview
Advanced Preparation:None
Recommended Field of Study:Accounting
Learning Objectives
  • Distinguish between software that is considered internal-use and not considered internal-use.
  • Recognize how implementation costs are accounted for in various stages of software development.
  • Identify when capitalization and amortization should commence.
  • Recognize how implementation costs of hosting arrangements are accounted for differently.
  • Recognize software that is within the scope of ASC Topic 985-20.
  • Identify how software costs are recorded prior to and after establishing technological feasibility.
  • Recognize how amortization is recorded for capitalized software costs.
  • Identify general disclosure requirements related to software for resale.

CPE Depot Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

Sponsor Number: 109423


Search Courses

Group Plan

Group plans are convenient and cost effective!

Authors Wanted

We are looking for authors!