Technology

This Technology Spotlight discusses the accounting for generative AI software development, including which U.S. GAAP to apply and how to evaluate the related costs.

The 2023 inaugural edition of Deloitte’s Technology Industry Accounting Guide addresses topics of relevance to finance and accounting professionals in the technology industry, such as revenue recognition, software-related costs, acquisitions and divestitures, consolidation, stock-based compensation, leases, financial instruments, income taxes, digital assets, initial public offerings, and disclosures of non-GAAP measures and metrics.

This publication provides illustrative examples of software arrangements involving cloud conversion or switching rights and discusses potential models that software entities may consider when accounting for such arrangements under ASC 606.

This publication discusses how technology entities that sell smart devices and related subscription services to customers should apply the revenue guidance in ASC 606 to determine whether to account for those offerings as multiple performance obligations or as a combined performance obligation. It also discusses the interaction between ASC 606 and ASC 842 in the accounting for arrangements that include the lease of a smart device and the sale of a subscription service.

This Technology Spotlight discusses scoping considerations for entities determining whether software and software-related costs incurred should be accounted for under ASC 985-20, ASC 350-40, or other U.S. GAAP.