The Great Migration, or the relocation of more than 6 million African Americans from the rural South to the cities of the North, Midwest and West from 1916 to 1970, had a huge impact on urban life in the United States.
With the traditional perpetual license purchase of software, the rules are easier to apply. Clearly, the cost of the license can be capitalized and amortized over a useful life period (five years typically). Some of the implementation costs, which are usually billed by the vendor or third-party can be capitalized. Software development is the key term that would include creating the chart of accounts and customizing components of the software to function effectively for the organization and testing.
Capitalization can be used as a tool to commit financial statement reporting fraud. If costs are capitalized that should have been charged to expense, current income is inflated, at the expense of future periods over which additional depreciation will now be charged.apitalization is also based on the concept of materiality. If a cost is too small, it is charged to expense at once, rather than bothering with a series of accounting calculations and journal entries to capitalize it and then gradually charge it to expense over time.