What does internal-use software mean on the CPA exam?
Internal-use software. Software acquired or built for the entity's own operations. Costs are expensed in the preliminary and post-implementation stages and capitalized only in development.
Defined against ASC 350-40-25.
Which CPA exam sections use internal-use software?
Internal-use software appears in the BAR section of the CPA exam.
Related terms
- technological feasibility: The point at which software to be sold, leased, or otherwise marketed reaches a completed detail program design or, absent one, a working model.
- capitalize: To record a cost as an asset and spread it over the periods it benefits, rather than expensing it immediately.
- asset acquisition: Buying a group of assets that does not amount to a business.
- right-of-use asset: The lessee's asset representing its right to use the leased item for the lease term.
- business combination: A transaction in which one entity obtains control of a business.
- cash equivalents: Short-term, highly liquid investments readily convertible to known amounts of cash and so near maturity that interest rate changes pose insignificant risk.