At its meeting on February 4, 2021, the AcSB discussed an analysis on the accounting treatment under existing guidance for implementation costs incurred in a cloud computing arrangement. Specifically, the analysis focused on the customer’s accounting for the configuration or customization costs. The Board noted the complexity involved in applying the guidance in practice and discussed whether the complexity is warranted and if the accounting outcome would provide decision-useful information to financial statement users. The AcSB directed staff to seek input on possible solutions from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee and present a project proposal for the Board’s consideration at its March 2021 meeting.

Review the Executive Summary on the AcSB's Web site.