Integration and glue code
Coding and configuring the integrations around a model, in the application-development stage of an internal-use build, is capitalized ASC 350-40-25. Where the integration is implementation of a hosted service, the same test applies through ASU 2018-15 ASU 2018-15. Ongoing maintenance of the integration after go-live is expensed.
Which costs qualify
Integration code that builds owned software, the adapters, orchestration and data plumbing that make the model usable in your systems, is development-stage cost and capitalizable. If instead you are integrating a hosted service you do not control, ASU 2018-15 routes the implementation cost through the same internal-use software test, with the asset amortized over the arrangement term.
Posts to
Primary sources
- [S1] KPMG: Hot Topic: ASC 350-40, customers' accounting for cloud computing arrangements after adopting ASU 2018-15 (updated September 2021) (US GAAP)
- [S2] KPMG: Cloud computing implementation costs post ASU 2018-15 (US GAAP)
Ledger current as of 2026-10-23. A position and a citation, not accounting advice. See how we cite.