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IT Security as R&D vs G&A expense


We just hired a CISO (Chief Information Security Officer).

Her role will be focused on Data Security & Privacy. We're a small data driven software firm, so looking at her projects they will be helping the product team as we expand into new markets making sure our data is compliance (R&D), but also she'll be responsible for overarching IT security in the company (G&A).

Would you split these or as a inter-dept allocation or book this role as purely G&A?



Topic Expert
Keith Perry
Title: Director of Global Accounting
Company: Agrinos, Inc.
(Director of Global Accounting, Agrinos, Inc.) |

It is hard to tell from your question. Also, I'm not sure *why* you're asking it.
1) if you mean "should I capitalize it", mostly no and no (it isn't helpful, and it probably won't pass GAAP, so don't bother).
2) if you mean "is this cogs", then yes, splitting is helpful in showing that there are costs there.

Hope that helps


(Finance Director) |

not asking about capitalization. Just more about how to class as R&D vs G&A. I've always counted these sorts of IT related folks in R&D (as part of the engineering & data teams), but at my new company our CEO is trying to load it into G&A.
We definitely won't be counting her in COGS though.


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