In practice, very few firms capitalize costs of developing computer software. However, Statement No. 86 requires that

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In practice, very few firms capitalize costs of developing computer software. However, Statement No. 86 requires that firms capitalize (and subsequently amortize) development costs once the “technological feasibility” stage of a product is reached. Review the Adobe Systems illustration in the chapter (Example 5) and discuss why the firm does not capitalize any software development costs.

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