Mechanics
US GAAP vs IFRS on the same token spend
The posting
The same token spend can book differently under the two frameworks. US GAAP uses the ASC 350-40 internal-use model, now gated by ASU 2025-06's probable-to-complete threshold. IFRS uses the IAS 38 research-versus-development split, capitalizing development only when all six criteria are met IAS 38-57. On cloud configuration, ASU 2018-15 and the IFRIC March 2021 decision diverge most sharply.
Where they converge
Both frameworks expense research and experimentation, both capitalize genuine development that produces a controlled asset, and both expense production running. The default answers for pure inference and pure research are the same.
Where they diverge
- Recognition trigger: ASU 2025-06 probable-to-complete plus uncertainty gate vs the six IAS 38.57 development criteria.
- Cloud configuration: ASU 2018-15 permits capitalizing implementation; the IFRIC March 2021 decision generally expenses it IFRIC 2021.
- Structure: US GAAP frames internal-use vs sold; IFRS frames research vs development phase.
Posts to
Primary sources
- [S5] IFRS Foundation: IAS 38 Intangible Assets (IFRS)
- [S1] KPMG: Hot Topic: Accounting for internal-use software (ASC 350-40) (US GAAP)
Ledger current as of 2026-07-24. A position and a citation, not accounting advice. See how we cite.