U.S. accounting rulemakers have updated the rules for how companies track and report their spending on software they build for their own use.
The Financial Accounting Standards Board (FASB) on September 18, 2025, released Accounting Standards Update (ASU) No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, aimed at making it simpler and more consistent for businesses to track and disclose expenses related to software they build for their own operations.
The guidance moves away from strict, phase-by-phase cost tracking, opting instead for a more flexible, modern approach that better reflects today’s software development
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