Pwc's Cfodirect Podcast

Text us your thoughts on this episodeWe kick off our miniseries on software costs. They are accounted for using two different models depending on whether the software is used internally or externally. In this episode we focus on the external use model applicable to software to be sold, leased, or otherwise marketed as a separate product or embedded within a product or process.In this episode, we discuss:3:20 – How to determine whether the internal use or externally-marketed software models apply 10:08 – An overview of the externally marketed software model (ASC 985-20)11:25 – When technological feasibility of software is established19:55 – The types of costs capitalized under the model for externally marketed software22:40 – Practical challenges in applying the externally marketed software model27:55 – Applying the guidance to Artificial Intelligence (AI) 31:10 – An update on the FASB’s software costs projectFor more information, see chapter 2 of our Software costs guide. Additionally, follow this podcast on