Guidance addresses software accounting for federal agencies

By Ken Tysiac

New implementation guidance issued this week is intended to help federal government reporting entities implement an accounting standard for internal-use software.

The Accounting and Auditing Policy Committee of the Federal Accounting Standards Advisory Board (FASAB) issued Statement of Federal Financial Accounting Technical Release 16, Implementation Guidance for Internal Use Software.

This guidance was developed to help federal government agencies implement Statement of Federal Financial Accounting Standards (SFFAS) No. 10, Accounting for Internal Use Software, which was issued in 1998.

Since then, terminology and techniques have evolved substantially along with technology; the implementation guidance is designed to help reporting entities apply the standard in the wake of changes in software development practices.

The technical release provides:

  • Definitions and guidance regarding recognition, measurement, and disclosure requirements.
  • Guidance related to new challenges brought by changes in internal-use software since the issuance of SFFAS No. 10.
  • Guidance on management’s role in applying SFFAS No. 10.

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.