# 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](/software-capitalization/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](/software-capitalization/glossary/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](/software-capitalization/asu-2025-06), [the probable-to-complete threshold](/software-capitalization/glossary/probable-to-complete).

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