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    ezullo's Avatar
    ezullo Posts: 1, Reputation: 1
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    #1

    May 20, 2010, 07:21 AM
    What does GAAP say about accounting for software licenses?
    I need to know the rules for accounting for software licenses
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 20, 2010, 11:53 PM

    Software isn't exactly well covered. First, you need to decide if the cost is high enough to warrant capitalizing it at all. Generally companies have a price point under which they just expense stuff, and over which they capitalize.

    It may also depend on whether the lease is actually ongoing or just good for a year. Probably the longest life software is going to be considered to have is about 3 years, so you can amortize it over that life, unless the lease period is actually shorter and then you would use that.
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