Dumb question but I am trying to get my head around software development expenses and how it's recognized throughout the 3 statements when only a portion of the expense is capitalized:
1 engineer @ $200k total comp, 60% of salary capitalized for R&D/IDS purposes over 5 year life
$120k expense hits IS on annual basis, $120k * (1-T) to net income
$80k capitalized to balance sheet, $24k amortized in Y1 (no impact on EBITDA), $24k*(1-T) to net income
$200k hit in SCF in Y1
Explicabo quia rerum consequatur enim labore pariatur deserunt. Quis voluptatum rem quod rem. Dicta saepe porro earum eaque nisi mollitia. Voluptate eius quam quis reprehenderit et repellendus fugiat. Omnis esse rerum provident aliquid voluptatem delectus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...