IUS Accounting

In accordance with FMR Chapter 4 Volume 6, capital IUS should be accounted for using the appropriate posting models with general ledger (GL) accounts. This will include the capitalization and amortization of the capital costs throughout the useful life of the asset. A decision tree has been created in order to assist with determining if an IUS asset meets the criteria for capitalization.

IUS In Development

As part of the development phase of IUS, all capital costs should be captured throughout the development process in the Software in Development GL account. Upon final acceptance testing or full deployment decision (for MAIS programs) the applicable costs should be capitalized as an asset in the APSR. In order to support full costing and accumulation of the development costs, contracts should be written to assist in the identification of applicable capitalizable costs. See the following expense vs. capitalize table for specific cost treatments.


As part of accounting for IUS, software enhancements that meet the criteria for capitalization of IUS and provide significant additional capabilities should be capitalized and amortized over it’s useful life. Enhancements that do not add significant additional capabilities should be expensed as incurred. Refer to SFFAS 10 and FMR Volume 4 Chapter 6 for additional information on capitalizing IUS enhancements.

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