The development window
The development window is the span during which token and compute spend on an internal-use build can be capitalized. It opens when the preliminary stage ends and application development begins, and closes when the software is substantially complete and ready for use ASC 350-40-25. Spend outside the window, before it or after go-live, is expensed.
When the window opens
It opens once the preliminary project stage, conceptual evaluation and vendor selection, is complete and coding, configuration and directly attributable build compute begin. Under ASU 2025-06 this reframes as the point the probable-to-complete threshold is met with no significant development uncertainty.
When it must close
It closes when the software is substantially complete and ready for its intended use. After that, operation and maintenance are post-implementation costs, expensed ASC 350-40-35.
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Ledger current as of 2026-07-24. A position and a citation, not accounting advice. See how we cite.