FRA - Software development for internal use

CFA Level I FRA
#1

I stubmled with this question. I thought that under GAAP, if software development was not for sale the development cost had to be expensed. This question’s answer says the oposite. Can you help me?

Under US GAAP, what is the treatment of expenses incurred on the development of software that will be used for a company’s internal own purposes?

A) All costs are expensed until the technology’s feasibility is established.

B) All costs of this project are capitalized. (CORRECT ANSWER)

C) All costs of this project are expensed as incurred.

#2

You’re mistaken.

From the CFA®Program Curriculum, 2016, Level I, Volume 3, p. 456, Example 3:

Solution to 2:

Under US GAAP, the company would capitalize the entire €12,000 spent to develop software for internal use.

#3

Thanks!