Discuss one(1) important consequence of software being intangible.
Answers
Explanation:
The Statement of Federal Accounting Standards (SFFAS) No. 10 provides a set of rules about how to treat the transformation of the cost of internal software into value as an asset on the balance sheet. We will not get into these details here in this blog, but it is important to realize that both tangible and intangible software assets can and should be looked at in terms of the value they offer to the bottom line.
Does your organization have a standard rule it uses in classifying internal software? Is it considered an expense or an asset? Do you have clear guidelines for determining whether to classify your software as a tangible asset or an intangible asset? These questions are important for CIOs and CFOs to discuss to ensure software is allocated as a value to the business.