User Account

All Pages

Explain how software costs should be presented

Assignment Help Microeconomics
Reference no: EM131178869

Assignment

Creative Software is a firm that recently completed the development and testing of a new software program that provides the ability to transfer data to and from a variety of operating systems. The firm believes this product will be quite successful and has capitalized all of the costs of designing, developing, coding, and testing the software. Michael Leon, the President of Creative Software, located at 3200 Tech Avenue, Davie FL 33314 is your client. You are a newly hired staff member of FAU, Inc., an accounting firm located at 777 Glades Road, Boca Raton, FL 33431. Because Michael is unfamiliar with the proper accounting treatment of software costs according to United States Generally Accepted Accounting Principles (US GAAP) he has hired FAU, Inc. to explain the accounting treatments specified by US GAAP. (Adapted & Modified from SST 4th Edition)

Your firm has delegated to you the task of determining the treatment of software costs, and has asked that you prepare a four (4) page typed memo (not handwritten, 1.5 spacing -- not double spaced), including a works cited page (the 4th page of your memo should be designated as the works cited page; use MLA Format for your works cited page) to the client explaining

1. The standards that govern US GAAP treatment of software costs.

2. Whether Creative Software was correct in its treatment of the software development costs and why Creative Software's treatment was correct or incorrect.

3. Explain the appropriate methods for determining the amount of periodic amortization for any capitalized software development costs.

4. Explain how software costs should be presented and disclosed in the financial statements.

In addition, you are to formulate a question to ask the client that would help you determine the different types of software transaction(s) it is involved in, and include that in the conclusion of your memo.

This memo is expected to be professional and informative. Remember the purpose of the memo and the audience that it is addressing.

Follow the proper format for a memo, as presented in May & May, Effective Writing: A Handbook for Accountants. 10th ed. I will allow sub-headings in your memo.

Reference no: EM131178869

Questions Cloud

Assignment engages the student in understanding : This assignment engages the student in understanding how projects fit as implementation vehicles to meet organizational goals defined within the organization's  strategic plan. Organizational structures can have an impact on projects and portfolio..
What is expected value of the sum of the number : That is, what is E(X|A) where X is the sum of the numbers appearing on the two dice and A is the event that X ≥ 9? The law of total expectation states that if the
What moral or ethical limit should be put on genetic testing : What ethical principles apply to this discussion? What moral or ethical limits should be put on genetic testing and interventions? Should genetic engineering be legal? Should parents be allowed to "design" their children?
Draw time line that depict davenport expected service period : Draw a time line that depicts Davenport's expected service period, retirement period, and a 2016 measure- ment date for the pension obligation.
Explain how software costs should be presented : The standards that govern US GAAP treatment of software costs. Explain how software costs should be presented and disclosed in the financial statements.
Beneficial in manufacturing process : What is learning curve theory and how is it beneficial in manufacturing process.
Compute the expected number of runs in a sequence of n flips : Suppose I have a biased coin which comes up heads with probability p, and I flip it n times. A runis a sequence of coin flips all of the same type. which is not contained in any longer sequence of coinflips all of the same type. For example. the sequ..
Analyze the need for business systems analysis : Analyze the need for business systems analysis and the role of project management in health care organizations as they pertain to the evolution of EMRs.
How decisions of operations management could be applied : From your knowledge of restaurants in general, from the video, from the profile of Hard Rock that opens this chapter, and from the case itself, briefly identify how each of the 10 decisions of operations management could be applied at Hard Rock Ca..

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the degrees of freedom for the anova f statistic

To compare the mean scores across classes, what are the degrees of freedom for the ANOVA F statistic? The MSG = 11.806. If sp = 2.16, what is the F statistic?

  What is the official unemployment rate

Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10.

  How does use of internet intranets and extranets by

how does the use of internet intranets and extranets by companies today support their business process and activities?

  The incremental annual taxable income

Zeon, a large company has a regular taxable income of $350,000. The company is considering adding some automatic equipment to its production facilities. An investment of $120,000 will produce an initial annual benefit of $89,000 however the benefits ..

  Derive the total market demand for water

The three people in our model all have the same preferences, but each has a different income. One of them has an income of $100, another an income of $1,000, and the third has an income of $10,000. The price of water1 is $1 and the price of the compo..

  Deposits scheme problem

A company deposits $2000 in a bank at the end of every year for ten years. The company makes no deposits during the subsequent five years. If the bank pays 18 percent interest, how much would be in the account at the end of 15 years?

  Two projects-decide which alternative

Given that two projects have the same rate of return of 12 percent each. The incremental rate of return is 15 percent. If MARR is 15 percent, decide which alternative should be chosen.

  What is the level of production in the market equilibrium

Consider an industry with demand q = 120 - 3p and supply q = 2p - 10. What is the level of production in the market equilibrium? What is the socially optimal level of production

  Why does the aggregate demand curve slope downward

Give at least three reasons and examples when addressing this question, using your text, the Online Library, and the Internet as resources. Identify an event that would shift the AD curve and which direction the AD curve will shift.

  Explain the significance of project leaders attitude and

create a performance reporting presentation for the riordan manufacturing go green campaign 1.write a brief opening

  An asset for drilling was purchased and placed in service

An asset for drilling was purchased and placed in service by a petrolium production company. it cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years.

  Calculate the (target) reserve requirement

Suppose the general public purchase $500 million in government bonds and pay for them by drawing cheques on their chartered bank deposits. 1) Calculate the (target) reserve requirement

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd