What does technological feasibility mean on the CPA exam?
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. Costs before it are research and development expensed as incurred; costs after it are capitalized until general release.
Defined against ASC 985-20-25-2.
Which CPA exam sections use technological feasibility?
Technological feasibility appears in the FAR section of the CPA exam.
Related terms
- internal-use software: Software acquired or built for the entity's own operations.
- capitalize: To record a cost as an asset and spread it over the periods it benefits, rather than expensing it immediately.
- right-of-use asset: The lessee's asset representing its right to use the leased item for the lease term.
- asset retirement obligation: A legal obligation associated with the retirement of a tangible long-lived asset, recognized at fair value in the period incurred, with an equal asset retirement cost capitalized into the asset.
- management override: Management using its authority to bypass controls that otherwise work.
- asset acquisition: Buying a group of assets that does not amount to a business.