Reagan-Era Software Accounting Rules Prepped for Modern Refresh

The tools and apps inside a modern tractor do more than help farmers plow their fields; they also test soil quality, measure ground temperature, and even direct self-driving machines to spray fertilizer.

The development of this cutting-edge software moves fast—but not for accounting. The methods by which farm equipment manufacturers and other software makers account for their expenses date back decades.

“The accounting pronouncements and standards really haven’t kept up with the times or the way our IT counterparts do software development,” said Lara Long, chief accounting officer for Agco Corp., the Atlanta-based maker of Massey Ferguson tractors, Fendt combine ...