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Re: [scrumdevelopment] GAAP and Agile

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  • Mark Levison
    I did the same as Ron - albeit I wasn t a VP at the time. Cheers Mark *Mark Levison* | Co-Founder and Consultant -
    Message 1 of 34 , Dec 1, 2009
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      I did the same as Ron - albeit I wasn't a VP at the time.

      Cheers
      Mark

      Blog | Twitter | Office: (613) 761-9821


      On Mon, Nov 30, 2009 at 5:35 PM, Ron Jeffries <ronjeffries@...> wrote:
       

      Hello, alisongilles. On Monday, November 30, 2009, at 3:39:29 PM,


      you wrote:

      > Has anyone experienced this or is anyone familiar with the
      > Accounting Principles for software?

      Last I knew about this (and I knew it well at that time), I decided
      that I could make up the numbers to be reasonable and that would
      suffice. So I did that.

      BTW I was at that time a VP of a publicly held corporation of some
      magnitude, so I wasn't just screwing around. Wisdom begins when we discover the difference between
      "That makes no sense" and "I don't understand". --Mary Doria Russell



      Blog | Twitter | Office: (613) 761-9821
    • Roy Morien
      Good points, Mark. AsI said earlier, the accounting profession seems to be 20 years behind in its accounting practices and internal auditing practices for
      Message 34 of 34 , Dec 8, 2009
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        Good points, Mark. AsI said earlier, the accounting profession seems to be 20 years behind in its accounting practices and internal auditing practices for software development.
         
        Regards,
        Roy Morien
         

        To: scrumdevelopment@yahoogroups.com
        From: woyna@...
        Date: Tue, 8 Dec 2009 22:46:31 +0000
        Subject: [scrumdevelopment] Re: GAAP and Agile

         

        R&D can not be capitalized, but once a product is deemed feasible, all design, development, and testing can be capitalized.

        I have a stinking suspicion that your accountants have been led to believe that "analysis" is R&D, and not simply a high-level form of design.

        Have you ever read the accounting rules for software development? It's clear that it was written by a group that was convinced that the waterfall model was the only viable one.

        For example, software "maintenance" can not be capitalized, when in fact most "maintenance" is actually adding new features to software, which extends its useful life. Software does not break or wear out like a physical item. The same bits will continue to run indefinitely unless the environment changes. When it does change, modifying the software to run in the new environment *is* adding a new capability.

        Mark

        --- In scrumdevelopment@ yahoogroups. com, "extremeprogrammer" <LanceWalton@ ...> wrote:
        >
        > --- In scrumdevelopment@ yahoogroups. com, Ron Jeffries <ronjeffries@ > wrote:
        > >
        > > Hello, extremeprogrammer. On Friday, December 4, 2009, at 2:24:49
        > > PM, you wrote:
        > >
        > >
        > > > Criminy! But can you really capitalize 'analysis' differently from
        > > > 'design', for example?
        > >
        > > When did a government or regulator ever care about that?
        > >
        >
        > That's what I was getting at. If the government and regulators don't care, then why do the accountants or finance department? If they can't use the discrimination between 'analysis', 'design', etc. to gain some tax break or something, then what do they do with the information?
        >
        > Regards,
        >
        > Lance
        >




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