FASB issues ASU on accounting for implementation costs of cloud computing arrangements
Filed under: Assets, Expenses
KPMG reports on the FASB’s new ASU on customers’ accounting for implementation costs in cloud computing arrangements (CCAs) based on a consensus of the FASB’s Emerging Issues Task Force (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.
- All companies that are customers in cloud computing arrangements (i.e. ‘hosting arrangements’ that do not transfer a software license to the customer)
Mandatory effective dates and early adoption provisions: