Amortization of capitalized computer software costs is:
A) Either the percentage-of-revenue method or the straight-line method at the company's option.
B) The greater of the percentage-of-revenue method or the straight-line method.
C) The lesser of the percentage-of-revenue method or the straight-line method.
D) Based on neither the percentage-of-revenue nor the straight-line method.

Question

Quizplus · Accepted Answer

Amortization of capitalized computer software costs should be the greater of the percentage-of-revenue method or the straight-line method, ensuring that the amortization reflects the pattern in which the economic benefits of the software are consumed.

Amortization of Capitalized Computer Software Costs Is