An entity adopts by one of three methods: prospectively, applying the amendments to the new software costs of every project, in-process ones included, from the start of the adoption period; a modified approach that is prospective for new costs but, for an in-process project that qualified for capitalisation under the old guidance yet does not meet 350-40-25-12 and 25-12A at adoption, removes the capitalised costs by a cumulative-effect entry against opening retained earnings (or other equity or net assets) at the beginning of the adoption year; or retrospectively, recasting comparative periods with a cumulative-effect adjustment to opening retained earnings at the beginning of the earliest period presented.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.