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  • September 2001
  • Background Note
  • HBS Case Collection

Accounting for Computer Software Development Costs

By: Robert S. Kaplan and Tatiana Sandino
  • Format:Print
  • | Pages:9
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Abstract

Summarizes the debate on accounting for computer software development costs. Provides a historical description of the development of standards on accounting of computer software development costs, both in the United States and internationally. Describes how, after much debate, standard setters gave companies the option to capitalize development costs that meet definitive standards, such as proof of technological feasibility. An exhibit reveals that, despite the requirement in the financial accounting standard to capitalize post-technological development costs, few large software companies in the United States capitalize any of their software development costs.

Keywords

Accounting; Information Technology Industry; Accounting Industry; United States

Citation

Kaplan, Robert S., and Tatiana Sandino. "Accounting for Computer Software Development Costs." Harvard Business School Background Note 102-034, September 2001.
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About The Authors

Robert S. Kaplan

Accounting and Management
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Tatiana Sandino

Accounting and Management
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  • Comparison of COVID-19 Hospitalization Costs across Care Pathways: A Patient-level Time-driven Activity-based Costing Analysis in a Brazilian Hospital By: Ricardo Bertoglio Cardoso, Miriam Allein Zago Marcolino, Milena Soriano Marcolino, Camila Felix Fortis, Leila Beltrami Moreira, Ana Paula Coutinho, Nadine Oliveira Clausell, Junaid Nabi, Robert S. Kaplan, Ana Paula Beck da Silva Etges and Carisi Anne Polanczyk
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