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Topics: Agile, Earned Value Management, Financial Services
Is a Subscriber Based Portal a Leasehold Improvement type of Asset

We may be writing off as an expense a lot of investment in Production based assets that are revenue producing. As brick and mortar institutions are quickly moving to cloud based operations, we think this tendency needs a hard look. After all, we are not putting any conscious effort into the role of cost vs. benefit and we aren't tracking the real critical path for agile delivery methods. We may be reducing cost but we're losing utility. i.e. it's the new REAL E STATE and belongs on the COMPANY BALANCE SHEET!
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Note this... Section 3350: Internal-use Software

[U.S. GAAP Codification Topic]
350-40 Internal-use software

[U.S. GAAP before the Codification]
350-40 Internal-use software
AICPA SOP 98-1, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use

1. Three stages to develop software
(1) Preliminary project stage
(2) Application development stage
(3) Post-implementation/operation stage

2. Preliminary project stage
-- Costs are expensed as incurred

3. Application development stage
-- Costs to develop internal-use software
-- during the application development stage
-- are capitalized

4. Post-implementation/operation stage
-- Costs are expensed as incurred

5. Upgrades and enhancements to software
-- Costs may be capitalized
-- if "additional functionality" is added

6. Capitalized software costs
-- are amortized on a "straight line" basis
-- over the estimated useful life
-- should be reviewed for impairment

1. It impacts project funding
2. It impacts upgrading to future tech requirements
3. It is the EVM of the project and of the PORTFOLIO

What is happening is that Developers are producing self-constructed assets and no one is booking them that way. Because Financial Engineering is not part of your DAY

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