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from a governmental accounting perspective. Have been comparing both FASAB and GASB guidance.
FASAB guidance states, "For internally developed software, capitalized cost should include the full cost (direct and indirect cost) incurred during the software development stage.4"
"Such costs include those for new software (e.g., salaries of programmers, systems analysts, project managers, and administrative personnel; associated employee benefits; outside consultants' fees; rent; and supplies) and documentation manuals."
But I also have read that data conversion costs, and training costs are not capitalized. I've also read that General and Administrative Expenses are not capitalized. Wouldn't that include rent and supplies?
My job just capitalizes the salaries of the programmers working on the project, but based on this guidance shouldn't all cost incurred during the Software Development Phase be capitalized.
For instance, a contractor might bill my agency for labor costs for security guards who monitor the building that they are renting to develop the software in. They bill the agency for postage, shipping, utilities and all sorts of costs they incur while working on the project. Based on the above guidance, wouldn't things like this be capitalized?
I'm interpreting full cost to mean everything. Am I thinking this through incorrectly.
FASAB guidance states, "For internally developed software, capitalized cost should include the full cost (direct and indirect cost) incurred during the software development stage.4"
"Such costs include those for new software (e.g., salaries of programmers, systems analysts, project managers, and administrative personnel; associated employee benefits; outside consultants' fees; rent; and supplies) and documentation manuals."
But I also have read that data conversion costs, and training costs are not capitalized. I've also read that General and Administrative Expenses are not capitalized. Wouldn't that include rent and supplies?
My job just capitalizes the salaries of the programmers working on the project, but based on this guidance shouldn't all cost incurred during the Software Development Phase be capitalized.
For instance, a contractor might bill my agency for labor costs for security guards who monitor the building that they are renting to develop the software in. They bill the agency for postage, shipping, utilities and all sorts of costs they incur while working on the project. Based on the above guidance, wouldn't things like this be capitalized?
I'm interpreting full cost to mean everything. Am I thinking this through incorrectly.