In reading through the characteristics of Software Sold ASC 985 vs a Hosted SaaS product capitalized under ASC 350 I have found that we align with the ladder of the two. However, we implement and "Agile" like approach to development, where we are constantly pushing small update/enhancements out to all users of our product. Capitalizing the RND effort although tedious considering the speed at which we can implement an enhancement is straight forward. I am getting hung up on how the amortization should be tracked though. As we only sell one software and it is not being "replaced" with the updates made, but are simply adding using an additional functionality (i.e a new field or a new option in a drop down ect.) While it technically is an enhancement to the product the "useful" life of the product is being ever extended by these enhancements, but each individual enhancement would not be sold separately or have its own determinable useful life. If anyone as delt with a similar issue I would appreciate the input.
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