Accounting for developed software on contract
Recep YILMAZ · Pressacademia · 2015
Software companies often develop software by orders and get incomes. The amount of this type of income is quite high. There is some rules for companies which want to report according to international accounting standards. In cases, if duration of software develop will be more than a year, "Construction Contracts" standard is necessary to make proper reporting. For reporting, production cost information is necessary. Therefore, IFRS, AICPA and FASB standards were analyzed and compared. Production processes which is described as development has explained. Thus, development process can be monitored with expenditures. A detailed application example were revealed for the software development process and expenditure. Taking into consideration to periodicity principle, accounting records was made according to information users and standard.