The presentation and disclosure of software-related costs in the financial statements depends on the nature of the costs and how the software will be used. As described in SW 1.1, the accounting guidance for software-related costs is generally modeled after the inventory guidance (for software that is sold to customers) or the fixed assets guidance (for software that is used internally); accordingly, the presentation of those respective costs will generally be similar to those comparable financial statements line items.

For a CCA that is a service contract, although the determination of whether costs should be capitalized is based on the internal-use software guidance, the presentation of costs is similar to other purchased services. For example, the amortization of capitalized implementation costs is presented in the same line item as the ongoing costs of the CCA service.

See FSP 8.7 for further discussion of presentation and disclosure requirements for capitalized software and software-related costs.