Tech companies such as Google, Facebook, Snap, Amazon, Spotify, Dropbox, Box, Pinterest, Lyft state in their 10k that software development costs are immaterial, so they expense and don't capitalize. How do they reach this conclusion? And how do their auditors (all are audited by EY except Lyft which is PwC) sign off on it? Conceptually, it boggles my mind since these are engineering led companies developing new technologies all day long.
