Post #9030 by chk999 on the Berkshire Hathaway board

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I know, for example, Daily Journal expenses the Journal Technology development costs, as they are incurred and only recognises income when implementations have gone live and the customer is happy to pay for the development.

At one place I worked, I had multiple arguments with the CFO about this exact topic. My point was we would be doing software development, maintenance and administration for as long as the company was in business. And expensing the development costs each year was much more realistic than claiming they were longer term and could be amortized over multiple years. But the bottom line of his point was that doing so made the current years numbers look better. Seemed dishonest to me.

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