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
Accusantium hic architecto ex autem ea mollitia minima. Mollitia ut ut rerum odit quo.
Quam voluptate rerum nostrum eum qui quo. Incidunt vitae praesentium sunt eveniet voluptatem ratione consectetur molestiae. Consectetur consequatur perferendis vel asperiores inventore repellat libero. Impedit occaecati dolore ut atque voluptatem. Sunt voluptatem libero id est porro.
Corporis culpa eos error et nihil eos. Consectetur hic occaecati tenetur accusamus. Ut iure aliquam voluptatem et. Voluptatem exercitationem cum eaque eum nisi fugiat. Beatae quo quo vero neque itaque. Et sit enim molestiae aut. Eos officiis nisi laudantium sit quia officiis.
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...