Software Development Costs
{"Image DocumentName": "Software Development Costs", "Image ImageDescription": "Amortization of capitalized computer software costs starts when the product begins to be marketed. Two methods, the percentage of revenue method and the straight-line method, are compared and the method producing the largest amount of amortization is used. Balance Sheet. The unamortized portion of capitalized computer software cost is an asset. Income Statement. Amortization expense associated with computer software cost. R&D expense associated with computer software development cost. Disclosure. Part I. Amortization of capitalized computer software costs starts when the product begins to be marketed. Two methods, the percentage of revenue method and the straight-line method, are compared and the method producing the largest amount of amortization is used. The periodic amortization percentage is the greater of: the ratio of current revenues to current and anticipated revenues (the percentage of revenues method). the straight-line percentage over the useful life of the asset. (the straight-line method). Part II. The unamortized portion of capitalized computer software cost is reported in the balance sheet as an asset. The periodic amortization expense associated with the capitalized computer software cost is reported in the income statement. The research and development expense associated with computer software development is reported in the income statement.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}