ASU 2025-06: Performance Requirements
A term ASU 2025-06 defines as what the software needs to do — its functions and features; until the significant ones settle, capitalization waits.
In plain terms: performance requirements are what the software has to do — its functions and features.
Performance requirements is a term newly defined by ASU 2025-06: “what an entity needs the software to do (for example, functions or features).” It matters because one of the two significant development uncertainty factors is whether the significant performance requirements have been identified — and stay identified, rather than being substantially revised.
For agile teams, that’s the difference between a defined, stable scope and a backlog still churning through discovery. Capitalization waits until the significant requirements settle; ordinary refinement of details doesn’t reset the clock.
See also: ASU 2025-06, the probable-to-complete threshold.
Capitalize software development costs in Jira — without the manual work
Quantify turns Jira activity into audit-ready software-capitalization data automatically — no manual timesheets.