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Software capitalization (ASC 350-40 / IAS 38) decision guide

Evaluates internal-use software or development costs for capitalization vs expense, with stages and required documentation. Useful for tech companies and auditors.

Assess software development costs for capitalization under {standard} (ASC 350-40 / IAS 38).

Inputs:
- Project description and timeline: {project_timeline}
- Costs incurred by type (payroll, contractors, cloud): {costs}
- Development stage (preliminary, application dev, post-implementation): {stage_info}
- Useful life and amortization policy: {amort_policy}
- Impairment indicators: {impairment_indicators}

Output:
1) Stage assessment and capitalize/expense decision table by cost type.
2) Capitalization schedule and monthly amortization outline.
3) Required documentation and controls.
4) Common pitfalls (research vs development, maintenance, agile sprints).

Be conservative and evidence-based.

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