Balance Sheet

Are expensed until the point of technology feasibility.  After technological feasibility, the costs can be capitalized.

The lessee will not depreciate the leased asset on their books. Instead, the lessee will record a “right-of-use" (ROU) asset which will be amortized over the life of the lease.

Revenues: generally accrued when measurable and available within 60 days of year-end. 

1. Derived non-exchange revenues 
2. Imposed non-exchange revenues 
3. Government-mandated revenues 
4. Voluntary non-exchange revenues 

The accounting for this requires an entry to the beginning and closing balances for the same amount.