Implications of New ASU on Capitalizing Software Costs in Nonprofits  

Upon successful completion of this course, the user should be able to:

• differentiate between costs that must be expensed and those eligible for capitalization in internally developed software projects under GAAP and ASU 2025-06;

• identify the capitalization threshold based on management authorization, commitment to funding, and probability of completion and intended functionality; and

• evaluate accounting treatment for upgrades, cloud-based implementations, website development, impairment, and grant-funded software projects in nonprofit organizations.