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

6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.