Accounting Study Guide

U.S. GAAP
Financial Reporting Guide

Section 3340: Web-site Development Costs

[U.S. GAAP Codification Topic]
350-50 Website development costs

[U.S. GAAP before the Codification]
EITF 0-2, 2000, Accounting for Web Site Development Costs
SFAS 142, June 2001, Goodwill and Other Intangible Assets

1. Activities to develop websites
(1) Planning stage
(2) Development stage
(2a) Infrastructure development stage
(2b) Application development stage
(2c) Graphics development stage
(2d) Content development stage
(3) Operating stage

2. Planning stage costs are
--> expensed

3. Internet domain name costs are
--> capitalized

4. Development stage costs
--> apply the rules of AICPA SOP 98-1

5. Operating stage costs
--> apply the rules of AICPA SOP 98-1