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• The internal-use software development cost capitalization threshold will change by eliminating accounting consideration of software development stages; cost capitalization will begin solely when management has committed to funding the software project and it is ‘probableâ€� the project will be completed and the software used to perform its intended function (the ‘probable-to-completeâ€� threshold).
• The final ASU will explicitly link ‘probableâ€� in the probable-to-complete threshold to the ASC Master Glossary definition.
• As part of the probable-to-complete assessment, entities will assess whether software projects are subject to significant development uncertainty. If so, completion is not probable until such uncertainty is resolved.
• Significant development uncertainty will exist when either the software or its core features/functions are novel, unique or unproven, or the significant performance requirements of the software (i.e. what the software is needed to do â€� e.g. its functions or features) remain unidentified or subject to substantial further revision.
• Significant development uncertainty stemming from novel, unique or unproven features/functions must be resolved through coding and testing that establishes the software can meet its performance requirements, similar to how ‘high-risk development issuesâ€� are resolved for external-use software under ASC 985-20.
• Board members emphasized that judgment is expected in applying the updated cost capitalization guidance.

• Disclosures will now be required under ASC 360-10 for all software costs capitalized under ASC 350-40, regardless of how they are presented in the balance sheet (e.g. as intangible assets or PP&E). 
• The final ASU will not include the proposed ASU requirement to separately present cash paid for capitalized internal-use software costs.

ASC 350-50 on website development costs will be eliminated with relevant guidance therefrom, including that on graphics and content, and a new illustrative example codified into ASC 350-40. 

The final ASU will be applied:

• retrospectively;
• prospectively only to software costs incurred on new and existing software projects after the adoption date; or
• prospectively to software costs incurred on new and existing software projects after the adoption date with a cumulative effect adjustment for existing, in-process project capitalized costs.

Transition disclosures will be required under ASC 250 based on the transition method selected. 

• the existing accounting requirements for external-use software (i.e. software to be sold or licensed);
• what internal-use software costs can be capitalized (e.g. data conversion/migration, training and software maintenance costs will continue to be expensed as incurred); or
• when internal-use software cost capitalization ceases (i.e. when the software is ‘substantially complete and ready for its intended useâ€�).