Defining Issues | August 2018
New ASU on customers’ accounting for implementation costs in cloud computing arrangements (CCAs)
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.
ASU 2018-15
Mandatory effective dates and early adoption provisions
Effective date | Public business entities | All other entities |
Annual periods – Fiscal years beginning after | December 15, 2019 | December 15, 2020 |
Interim periods – In fiscal years beginning after | December 15, 2019 | December 15, 2021 |
Early adoption allowed? | Yes, for all companies. | Yes, for all companies. |
FASB issues ASU on accounting for implementation costs
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