Significant development uncertainty
ASU 2025-06 blocks capitalization while significant uncertainty remains about whether the development activities will result in software that performs as intended ASU 2025-06. For a novel or unproven model, this gate keeps the compute in expense even after funding is committed, because committing budget does not resolve technical feasibility.
What counts as significant uncertainty
Uncertainty is significant when there is real doubt the work will yield usable software: an unproven architecture, an unvalidated approach, or a research question rather than an engineering task. It is the US analogue of the IAS 38 technical-feasibility criterion under IFRS.
Why committed funding does not override it
Funding shows intent and resources; it does not show the model will work. Both the probable-to-complete threshold and this uncertainty gate must be cleared. A well-funded moonshot is still expensed until feasibility is demonstrable.
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Ledger current as of 2026-07-24. A position and a citation, not accounting advice. See how we cite.