Join CLA’s Technical Accounting Update

Registration and breakfast

Speaker: Travis Whiting

Session description: This session provides a focused technical accounting update on software capitalization for entities operating in the technology and life sciences industries.

The program begins with a brief overview of the current accounting framework for software development costs, covering both internally developed software for internal use under ASC 350-40 and internally developed software for sale, lease, or licensing to customers under ASC 985-20.

The primary focus of the session is on ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, issued by the FASB in September 2025. Participants will explore the key changes introduced by the new ASU, including the elimination of the project-stage capitalization model, the new “probable-to-complete” recognition threshold, the assessment of significant development uncertainty, the treatment of website development costs following the supersession of ASC 350-50, and the enhanced ASC 360-10 disclosure requirements.

The session will also address transition alternatives, effective dates, and early adoption considerations, and will conclude with a discussion of the practical business implications for technology and life sciences entities, including impacts on agile development, SaaS platform build-outs, R&D-heavy product roadmaps, financial reporting metrics, debt covenants, and internal controls and documentation.

Learning objectives:

• Recognize the current framework for accounting for software development costs, including the distinction between internally developed software for internal use (ASC 350-40) and internally developed software to be sold, leased, or otherwise marketed to customers (ASC 985-20)
• Identify the key changes introduced by ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, including the elimination of the project-stage model and the introduction of the “probable-to-complete” recognition threshold.

10-min break

Speaker: Travis Whiting

Session description: This program is designed to provide a technical accounting update focused on the specific revenue recognition issues faced by entities in the technology and life sciences industries.

Participants will explore the application of ASC 606, Revenue from Contracts with Customers, to complex arrangements including software licenses, SaaS and hosting arrangements, bundled professional services, usage-based and variable consideration, milestone payments, collaboration agreements, licenses of intellectual property, and contract modifications.

The program incorporates authoritative guidance from ASC 606, ASC 340-40, and interpretive guidance published by the major accounting firms, and will highlight recent developments, disclosure considerations, and audit-readiness expectations relevant to preparers and practitioners serving these industries.

Learning objectives:

• Recognize how the identification of performance obligations drives the pattern and timing of revenue recognition
• Identify the industry-specific arrangements commonly encountered in the technology (software licenses, SaaS/hosting, term vs. perpetual licenses, professional services, usage-based fees) and life sciences (collaboration agreements, IP licenses, milestone payments, contract R&D/manufacturing, distributor sales) sectors that require judgment under ASC 606

Office hours

Final thoughts