SaaS
R&D Phase Transition — Start of Capitalization
The moment a product moves from preliminary research to the application development stage, triggering capitalization of internal costs.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Capitalized Software (Intangible) | Asset (+) | 25,000.00 | - |
| R&D Expense (Reversal / Credit) | Expense (-) | - | 25,000.00 |
💡 Accountant's Note
Under IAS 38 / ASC 350, costs before 'technical feasibility' are expensed. Once the product concept is proven and management commits to a development plan, subsequent costs are capitalized. This entry marks the switch.
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