Threshold For Capitalizing In-House Developed Software
DATED ADOPTED: 1‐24‐11
MINUTE BOOK: 37 PAGE: 200
POLICY: To establish a threshold for capitalizing in‐house developed software.
PROCEDURE: In accordance with guidelines established by GASB 51 and communicated by the State Examiners office, a threshold of expenditures exceeding $25,000 is hereby established for the development of in‐house designed software. Software development costs that equals or exceeds the $25,000 threshold limit will be capitalized while software development cost below the $25,000 threshold will be expensed. The capitalization limit pertains to in‐house labor expenditures occurring after the initial design of the software and continuing until the software is implemented.