Software Accounting Revamp Teed Up for Release by US Board (2)

Companies that develop their own software to use in-house are set to gain fresh updates to decades-old rules on how to account for the costs of building those apps and tools.

The Financial Accounting Standards Board voted Wednesday to finalize an effort modernizing rules originally written in the late 1990s to better align financial reporting with current software development. The board directed staff to draft the plan’s final version.

The targeted improvements are “fit-for-purpose at the lowest cost possible,” FASB Vice Chair Hillary Salo said.

The forthcoming plan, released as a draft last October, aims to clarify when ...