Cloud Computing – AcSB

Date recorded:

At its meeting on March 23-24, 2021, the AcSB discussed a summary of the accounting issues identified relating to the customer’s accounting for fees paid in a cloud computing arrangement and the accounting for the related implementation costs. On the customer’s accounting for fees paid in a cloud computing arrangement, the AcSB discussed undertaking standard-setting activity to develop an Accounting Guideline to help entities navigate the application of existing guidance, including factors to consider in determining whether the arrangement includes a software intangible asset.

On the accounting for related implementation costs, the Board discussed the feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on possible approaches to account for such costs when the cloud computing arrangement is a service contract. At its meeting in June 2021, the AcSB will continue to deliberate implementation costs and the development of an Accounting Guideline.

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

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