Accounting for Software to Be Sold or Licensed - What CPAs Need to Know​

Course Overview:

This course covers the accounting requirements for interest costs under U.S. GAAP, focusing on both imputation and capitalization. It begins with a review of the rules for recognizing imputed interest when no stated rate exists or when terms are not at market. You’ll learn how to identify transactions that require imputation, how to determine the appropriate interest rate, and how to record the resulting amounts. The course then shifts to the rules for capitalizing interest related to the construction or production of qualifying assets. It explains how to determine which assets qualify, how to calculate capitalizable interest, and how to apply the guidance during the capitalization period. Together, these topics provide a clear and practical understanding of how interest costs affect the financial statements.

 

Learning Objectives:

 Upon completion of this course, you will be able to:

• Identify situations where imputed interest must be recognized under U.S. GAAP
• Determine the appropriate interest rate to use when imputing interest
• Recognize the financial statement impact of recording imputed interest
• Distinguish between arrangements that require imputation and those that do not