Surfing the Standards Case 6: Software Development Costs, IFRS Companies will sometimes develop software for either external use (for example, to sell to customers) or for internal use. Should a company expense or capitalize internally developed software? IFRS does not provide specific rules for software; the accounting for software development costs falls under the general guidance for intangible assets. Does IFRS require that software development costs be expensed or capitalized? Please explain. Use the international authoritative literature for support.