Website Development Costs and Computer Software Developed for Internal Use

3 Months Ended

Mar. 31, 2014

Website Development Costs and Computer Software Developed for Internal Use

4.	Website development costs and computer software developed for internal use

U.S. GAAP requires that development costs incurred in the preliminary project and post-implementation stages of an internal use software project be expensed as incurred and that certain costs incurred in the application development stage of a project be capitalized. U.S. GAAP further requires that costs incurred in the preliminary project and operating stage of web site development be expensed as incurred and that certain costs incurred in the development stage of web site development be capitalized and amortized over its useful life. During the three months ended March 31, 2014, the Company capitalized $565,000 related to web site development. Amortization of capitalized web site costs was $607,000 for the three months ended March 31, 2014. During the three months ended March 31, 2013, the Company capitalized $502,000 related to web site development. Amortization of capitalized web site costs was $606,000 for the three months ended March 31, 2013. Capitalized web site costs are included in property and equipment, net on the accompanying condensed consolidated balance sheets.

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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