This course provides an overview of the accounting for software, including both internal-use software as well as software that will be sold to third parties. The accounting, reporting, and disclosure requirements related to software depends on the nature of the software, and whether it will be used internally by an entity or will be marketed to its customers. For internal-use software, the guidance is prescribed by ASC Topic 350-40. On the other hand, the guidance related to software to be marketed and sold is prescribed by ASC Topic 985-20.

Learning Objectives
  • Discover and distinguish between software that is considered internal-use and not considered internal-use.
  • Recognize how implementation costs are accounted for in various stages of software development.
  • Identify when capitalization and amortization should commence.
  • Recognize how implementation costs of hosting arrangements are accounted for differently Introduction.
Last updated/reviewed: August 27, 2023
6 Reviews (36 ratings)


Anonymous Author
The course was a good summary and refresher of the specific requirements relating to the accounting for internal-use software and software to be sold.

Member's Profile
Helpful course to consider when working in fintech environment - specifically on how to manage costs durng the development stage

Member's Profile
A very detailed course. Covers the subject matter in great details. Very well organized and presented.

Anonymous Author
good review of this topic and the ASC's that need to be known; good class; glad I picked it

Member's Profile
Instructor's material is very good and informative. Can learn a lot in this course.

Anonymous Author
Excellent course, well explained, helpful to my work. Thanks

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Accounting for Software - Internal Use and External SalesPDF