Earlier quoted context omitted.
Code is not "a liability". It is a tool that can be used masterfully or utterly abused. Every craftsman has to invest in their tools. And for someone to truly master their craft they must sometimes hone their tool skills speculatively, without short-term gain, and by sacrificing the time and attention used for other things, like actual projects. If everyone just obeyed their project manager and always focused 100% on…
Code absolutely is a liability. It is not a tool, it's a means to an end. A simple tool, like a hammer, is not volatile over time. The house that you build with your tools is. It will weaken and rot, and given enough time it will crumble. It takes care and maintenance to keep it safe to live in. It is the same with code in production; at some point in time in the future, through no fault of your own, the code can bec…
A simple tool like a hammer is rarely treated like an asset as it is expensed up front.
Code can generate cash flow through its replication and exchange, or its application. Whether this is higher than its depreciation and maintenance costs determines whether you’re losing money on it.
The above is an analogy of course, In actual financial accounting we typically see only see code or “knowledge capital” on the books after acquiring another company, usually as a fat chunk of “goodwill”.