Author Archives: Accounting

Extraordinary and Unusual Items, ASU 2015-01

FASB issued an Accounting Standards Update, ASU 2015-01, in January 2015

Topic: Income Statement – Extraordinary and Unusual Items (asc 225-20)

  • The concept of extraordinary items was eliminated.
  • Unusual or infrequently occurring items are
    • presented as a separate component of income from continuing operations¬†or
    • disclosed in the notes to financial statements




Research and Development Costs

Research and Development (R&D) costs are recognized as an expense during the period. Being recognized as an expense means that such costs are not capitalized as an intangible asset.

Costs of computer software
(1) Costs incurred until the technological feasibility is established –> research and development costs –> recognized as an expense
(2) Software production costs incurred after the technological feasibility is established
–>¬†capitalized as an intangible asset