Discussion:Website Development for Social Networking Site
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| Revision as of 19:52, 11 September 2009 Chase (Talk | contribs) (New Discussion) ← Previous diff |
Current revision TexCPA (Talk | contribs) (try this [[http) |
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| + | {{ForumReplyPost|UserID=TexCPA|Date=11 September 2009|Text=try this | ||
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| + | [[http://www.taxalmanac.org/index.php/Discussion:Amortizing_Website_Development_Costs]] | ||
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| + | the link in the thread above still works | ||
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| + | [[User:TexCPA|TexCPA]] 15:08, 11 September 2009 (CDT) | ||
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Current revision
Discussion Forum Index --> Accounting Questions --> Website Development for Social Networking Site
| 11 September 2009 | |
| I have read FAS-86 as well as SOP 98-1 and am still not completely clear as to the accounting treatment for a webiste developement corporation that I am working with. The company has a lot of contractors (India company and individual contractors) as well as SW developer employees. They are developed SW which masy be used as a referral source for businesses. This SW will most definitely be used by people who subscribe to the service but they are not selling software to any external users. They will be licensing the use of the software and will be selling the licenses ultimately. To date, the software has not been fully developed and is currently in beta testing.
I have treated the costs of the SW development, i.e. customized coding, content, etc. performed by the foreign developers as well as other corporate contracted developers as capitalized expenses for now per SOP 98-1. The company has insisted on booking the cost of the freelance individual contractors and the employees involved with development as operating expenses. As you can see, right now the development costs, as a result, are in 2 places...the BS and the P&L. This cannot be right. Which treatment is most appropriate? I like capitalizing all of the costs until the website is fully functional and then amortizing the costs on the books. I'd love to hear your opinions. | |
