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FAR CPA Custom > Computer Software Costs > Flashcards

Flashcards in Computer Software Costs Deck (6)
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1

Once the software has reached ______ ______ an entity can capitalize the costs related to the internal development of the software.

Technological feasability

2

Technological feasibility is defined as...?

The point when the program or model is complete, but the product is not yet on the market

3

Amortization of software costs is the greater of SL amortization or ((current revenue/expected revenue) x cost). TF

True

4

GAAP requires software costs be capitalized immediately. TF

False, expensed until the point of technological feasibility is met

5

IFRS requires software costs related to research to be expensed, and those related to development to be capitalized. TF

True

6

If NRV is less than capitalized cost - amortization, then NRV is reported as the net capitalized cost. TF

True and vice versa