When it comes to financial topics, I'm admittedly not well versed.  I'm trying to lead my organization in our software development effort using a Scrum based development life-cycle.  I am often discouraged when trying to coach executive leadership due to their belief that Scrum and Agile don't play well with their finanacial objectives.  The other day I was challenged to show how my software developers could capitalize %60 of their work hours.I've found a few articles on the web ( http://itprojectfinancials.com/insights/2011/06/05/capitalizing-software-development-costs-from-sdcl-to-agile/ ), but haven't come up with any great arguments.I'm looking for advice or examples of organizations that capitalize software costs effectively in an Agile development environment.This article sums up the issue pretty well, but offers no advise http://blogs.collab.net/agile/2007/12/20/the-scrum-gaap/
CFO's Expectations and Scrum Development
agile;scrum
After having an interesting twitter conversation with Berry Hawkins ( http://twitter.theinfo.org/162880048838352896#id162964857744932864 ) I think I have my answer.  The problem is that I was still thinking that I needed to have my developers account for their time spent designing software as an expense.  The solution is to look at whether the activity is before of after the product or feature is considered feasible.  Any activity, regardless of whether it's design, development, or test can be capitalized as long as it's past the research stage. I've written up some new guidelines and have them in to my CFO for review (fingers crossed).  The real test will be the auditors, but I think getting the CFO on board is the first step.  Thanks for all your comments.