Which threshold should be used when determining modifications to computer software that meets the GASB 51 criteria for capitalization?
The threshold used should be based on the nature of the modification and not the original asset: • If the modification does not require customization, as with purchased software, the $100,000 threshold should be used. • If the modification requires more than minimal incremental effort to modify, as with internally generated computer software, the $1 million threshold should be used.
