FASB Project: Cloud computing

As part of its due process, the FASB issues exposure drafts, discussion papers and other project documents for stakeholder review and input. This project page includes various milestones related to the FASB’s project on cloud computing.

August 29, 2018: FASB issues final amendments

The FASB’s new ASU on customers’ accounting for implementation costs in cloud computing arrangements (CCAs) based on a consensus of the EITF. Under the new guidance, implementation costs incurred by customers in CCAs are deferred if they would be capitalized by customers in software licensing arrangements under the internal-use software guidance.

June 8, 2018: EITF redeliberates and reaches final conclusion

KPMG reports on the EITF’s final consensus on customers’ accounting for implementation costs in cloud computing arrangements (CCAs). The EITF decided that implementation costs incurred by customers in CCAs should be deferred if they would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance.

March 1, 2018: FASB issues exposure draft

The FASB has issued a proposed ASU reflecting the EITF consensus-for-exposure on customers’ accounting for cloud computing arrangements (CCAs) implementation costs. The proposed ASU requires customers in CCAs to capitalize implementation costs incurred if those same costs would be capitalized by a customer in a software licensing arrangement.

October 13, 2017: EITF reaches tentative conclusion

The EITF reached a tentative conclusion that customers should account for cloud computing arrangements and software licensing arrangements consistently, and directed the FASB staff to perform additional research on the application of the tentative conclusion.

July 20, 2017: EITF deliberations

KPMG reports on the EITF’s deliberations on the accounting for implementation costs incurred in a cloud computing arrangement (i.e. a hosting arrangement) that does not contain a software license. The EITF directed the FASB staff to perform additional research on two alternative models and deliberations are expected to continue at the September 14, 2017 meeting.

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