Software Accounting Plan Updates Decades-Old Rules (Correct)

Companies making software to sell to the public via the cloud or to use for internal tools and applications would have to reveal more details about development costs reported on their balance sheets under a US accounting standard-setter proposal to be released later this year.

In addition to calling for new expense details in company cash flow statements, the plan also will propose narrow updates on accounting for software that companies use to run their business, a unanimous Financial Accounting Standards Board voted on Tuesday.

The forthcoming proposal will be a scaled-back version of FASB’s earlier ambitions to revamp ...