Cyndi LeBerthon, CPA Partner in Charge – Audit Department A long overdue update to how companies accounting for internal-use software has been issued. On September 18, 2025, the FASB issued ASU 2025-06, titled Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update marks a significant step in modernizing the accounting for software development costs in an era where cloud computing and agile development dominate the technology landscape. Entities may apply the guidance prospectively or retrospectively, based on their preference. The ASU is effective for public business entities for fiscal years beginning after
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