Loading ...
Sorry, an error occurred while loading the content.

Re: [scrumdevelopment] Agile Finance

Expand Messages
  • Charles Bradley - Professional Scrum Trai
    Dan, Regarding these bullet points on the presentation link from Ram --
    Message 1 of 6 , Jan 8, 2013
    • 0 Attachment
      Dan,

      Regarding these bullet points on the presentation link from Ram -- http://submit2012.agilealliance.org/files/session_pdfs/Agile2012_Agile%20Accounting%20Presentation%281%29.pdf

      <snip>
      Design talking points to present to your CFO to “sell” Agile. How can you help them understand the benefits of Agile re: GAAP?
      <snip>

      I minored in Accounting, but that was a long time ago.  But I'll give it a try anyway

      1.  Is the basic sum total of the benefits of Agile wrt GAAP that it's easier to capitalize/depreciate *more* software dev costs(vs. expensing) in Agile than in Waterfall?  (Assuming you can satisfy consistency and other compliance issues of course.)

      2.  If yes to #1, Is the result of the Agile/GAAP advantage simply that
      • a) you can delay expensing *more* software dev costs by a few years and state higher profits(vs. waterfall) in the current year this way?, and
      • b) state higher assets on the balance sheet(vs. waterfall) in the current year this way? 

      As an aside...

      "The purpose of GAAP is to ensure that financial reporting is transparent..."

      I sometimes feel that Product Backlogs, Sprint Backlogs, velocity, burndowns and the like are all to help ensure that software progress reporting is transparent.  Materiality is also an important concept here (I have an upcoming article on that).  Oh the parallels between (good) Scrum data and GAAP.....

      -------
      Charles Bradley
      Scrum Coach-in-Chief
      ScrumCrazy.com




      From: Dan Greening <dan@...>
      To: scrumdevelopment@yahoogroups.com
      Sent: Wednesday, January 2, 2013 2:20 PM
      Subject: Re: [scrumdevelopment] Agile Finance



      Hi Michael (and others),

      I have a paper possibly slated for publication on the topic of capitalization and depreciation that may help.  I can provide a preprint under the condition that you agree to provide feedback within a week of receipt.  Send request separately to me at dan@.... Thanks.

      Dan R. Greening — http://dan.greening.org> wrote:
       
      I need a few bullet points on what can be gained with taking agile development into account with company/project financials, where the result is an improved Balance Sheet. I remember, for example, that one could capitalize a larger percentage of development costs. I also remember financial charts that showed that incremental releases resulted in more ROI. 

      1. Can someone point me to a couple of good and authoritative articles on the subject?
      2. There was a really good book that came out a few years ago but I seem to have misplaced it and I can't remember its name. I just remember the paperback cover was sky blue. 
      3. Or, just for the proposal summary that I'm working on, can someone just list a couple of bullet points I can use to claim that changing how Finance accounts for agile projects will result in goodness?
      Thanks!

      Michael





    • Dan Greening
      Hi scrumdevelopers, There was a thread below on Agile Finance in scrumdevelopment a few weeks ago. I mentioned I was writing an article on the topic. I just
      Message 2 of 6 , Feb 3, 2013
      • 0 Attachment
        Hi scrumdevelopers,

        There was a thread below on Agile Finance in scrumdevelopment a few weeks ago.  I mentioned I was writing an article on the topic. I just posted Why Should Agilists Care About Capitalization? on InfoQ, after working on it for months. It includes a bunch of details on how we classified PBIs as expense or capitalize, and how we avoided time-cards and time-tracking, while making auditors much more happy.

        Of course, I am interested in feedback on the paper. My preference is replying to the paper on InfoQ proper or twitter reference to @greening. However, I am happy to answer questions or critiques here as well.  I'm also happy to discuss privately.

        I hope this helps.

        Dan Greening
        Managing Director, Senex Rex LLC, http://senexrex.com
        Email: dan@... Phone: +1 (415) 754-8311, Skypeid: drgreening


        On Wed, Jan 2, 2013 at 9:20 PM, Dan Greening <dan@...> wrote:
        Hi Michael (and others),

        I have a paper possibly slated for publication on the topic of capitalization and depreciation that may help.  I can provide a preprint under the condition that you agree to provide feedback within a week of receipt.  Send request separately to me at dan@.... Thanks.

        Dan R. Greening — http://dan.greening.org


        On Wed, Jan 2, 2013 at 1:15 PM, Michael Wollin <yahoo@...> wrote:
         

        I need a few bullet points on what can be gained with taking agile development into account with company/project financials, where the result is an improved Balance Sheet. I remember, for example, that one could capitalize a larger percentage of development costs. I also remember financial charts that showed that incremental releases resulted in more ROI. 

        1. Can someone point me to a couple of good and authoritative articles on the subject?
        2. There was a really good book that came out a few years ago but I seem to have misplaced it and I can't remember its name. I just remember the paperback cover was sky blue. 
        3. Or, just for the proposal summary that I'm working on, can someone just list a couple of bullet points I can use to claim that changing how Finance accounts for agile projects will result in goodness?
        Thanks!

        Michael



      Your message has been successfully submitted and would be delivered to recipients shortly.