Companies will sometimes develop software for either external use (for example, to sell to customers) or for

Question:

Companies will sometimes develop software for either external use (for example, to sell to customers) or for internal use. Should a company expense or capitalize internally developed software? U. S. GAP provides specific guidance regarding software and, furthermore, has separate guidance for software developed for internal use versus software developed for external use. a. Does U. S. GAP require that software development costs related to external- use software be expensed or capitalized? Please explain. Use the Codification for support. b. Does U. S. GAP require that software development costs related to internal- use software be expensed or capitalized? Please explain. Use the Codification for support.
Companies will sometimes develop software for either external use (for example, to sell to customers) or for internal use. Should a company expense or capitalize internally developed software? IFRS does not provide specific rules for software; the accounting for software development costs falls under the general guidance for . Does IFRS require that software development costs be expensed or capitalized? Please explain. Use the international authoritative literature for support.
Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...