
Proposed Updates to Accounting for Internal-Use Software
With the rise of agile development and modern technology, it’s time to ditch the old stage-based approach and embrace updates that better reflect how software is developed today. Here’s what’s proposed: 1) Modernization: Streamlined accounting rules for internal-use software (Subtopic 350-40) that align with contemporary methods. 2) Transparency: Improved visibility into cash flows tied to software costs for smarter investor insights. 3) Clarity: Simplified guidance that brings website development costs under the same umbrella. The comment deadline is January 27, 2025.