FASB Holds May 7 Meeting

At its May 7, 2025, meeting, the FASB discussed its project on the accounting for software costs — specifically, the feedback received on its proposed Accounting Standards Update (ASU) Targeted Improvements to the Accounting for Internal-Use Software. Topics addressed at the meeting included the following:

• Removal of references to project stages in ASC 350-40.
• Targeted improvements to ASC 350-40 with respect to the evaluation of whether significant development uncertainty exists.
• Presentation and disclosure requirements for software costs accounted for under ASC 350-40.
• The guidance on Web site development costs.
• Unit of account related to software components and tangible assets.
• Considerations for private companies.
• Effective date and transition.

The Board also concluded that the standard’s benefits would outweigh its costs and directed the staff to draft a final ASU for a vote by written ballot.

For more information, see the tentative Board decisions on the FASB’s Web site.