Accounting for software at federal agencies addressed in proposal

By Ken Tysiac

A recent proposal is designed to address challenges that federal government agencies have experienced in accounting for internal-use software.

Software development techniques have changed dramatically since the issuance in 1998 of Statement of Federal Financial Accounting Standards (SFFAS) 10, Accounting for Internal Use Software, by the Federal Accounting Standards Advisory Board (FASAB).

New terminology and techniques have evolved in the past 17 years that have made it difficult for federal agencies to apply SFFAS 10. 

These challenges are addressed in implementation guidance proposed in an exposure draft issued by FASAB’s Accounting and Auditing Policy Committee (AAPC). The AAPC is seeking comment on a Federal Financial Accounting Technical Release, Implementation Guidance for Internal Use Software.

Comments are sought until Oct. 28 and can be submitted by email at fasab@fasab.gov.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.