Cloud Computing – AcSB

Date recorded:

At its meeting on June 16-17, 2021, the AcSB continued discussing the identified accounting issues relating to the customer’s accounting for fees paid in a cloud computing arrangement and the accounting for the related implementation costs. The Board discussed factors that could be considered in assessing whether a cloud computing arrangement provides an entity with a software that it can control. The Board considered the guidance in U.S. GAAP as well as other factors that an entity might consider when assessing control of the software in the context of Section 3064, Goodwill and Intangible Assets. The AcSB directed staff to explore a simplification approach that would allow entities the option to expense the costs related to a cloud computing arrangement without having to perform an analysis to identify and evaluate the elements in the arrangement. The AcSB will continue to deliberate the issue of a draft Accounting Guideline at its September 2021 meeting.

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

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