# ASU 2025-06: Probable-to-Complete Threshold

The ASU 2025-06 threshold for capitalizing internal-use software — capitalize once funding is committed and the project is probable to be completed and used as intended.

**In plain terms:** you start capitalizing once the project is funded and likely to actually ship and work.

The probable-to-complete threshold is the recognition test [ASU 2025-06](/software-capitalization/asu-2025-06) put in place of the old three-stage model. Capitalization of internal-use software begins when both are true:

- **management has authorized and committed to funding** the project, and
- it is **probable** the project will be completed and the software used for its intended function.

"Probable" carries its FASB Master Glossary meaning — the outcome is likely, not merely possible. The threshold can't be met while [significant development uncertainty](/software-capitalization/glossary/significant-development-uncertainty) remains: novel technology still unproven, or significant [performance requirements](/software-capitalization/glossary/performance-requirements) still unsettled.

**See also:** [ASU 2025-06](/software-capitalization/asu-2025-06), [significant development uncertainty](/software-capitalization/glossary/significant-development-uncertainty).

## Capitalize software development costs in Jira — without the manual work

Quantify turns Jira activity into audit-ready software-capitalization data automatically — no manual timesheets.

[Talk to us about capex](https://www.quantifyhq.com/contact?utm_campaign=capex)