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Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use
9 Months Ended
Jan. 31, 2017
Notes to Financial Statements  
Internal Use Software Disclosure [Text Block]
Note
10
- Accounting for the Costs of Computer Software Developed for Internal Use:
 
The Company has adopted the provisions of the Statement of Position
98
-
1
(SOP
98
-
1),
"Accounting for the Costs of Computer Software Developed for Internal Use". SOP
98
-
1
requires companies to capitalize as long-lived assets many of the costs associated with developing or obtaining software for internal use and amortize those costs over the software's estimated useful life in a systematic and rational manner.
 
The Company capitalized
$411,000
and
$1,337,000
related to the development of software for internal use for the
nine
months ended
January
31,
2017
and
2016,
respectively. Capitalized software includes
$215,000
and
$975,000
of internal costs to develop software and
$196,000
and
$362,000
of
third
party programmers' costs for the
nine
months ended
January
31,
2017,
and
January
31,
2016,
respectively. Such costs are capitalized and amortized over the expected useful life of the asset which is
3
to
5
years. Total amortization expenses for the
nine
months ended
January
31,
2017
and
January
31,
2016,
were
$3,558,000
and
$1,985,000,
respectively. An increase of
$1,573,000
was primarily attributable to additional amortization of internally developed software costs related to the product production cycle that is expected to be upgraded during fiscal
2018.