Cloud Computing Arrangements – AcSB

Date recorded:

At its meeting on July 20-21, 2022, the AcSB assessed the sufficiency of stakeholders’ feedback from its outreach activities and comment letters received on its Exposure Draft and concluded that it has received sufficient feedback from a wide range of stakeholders, including practitioners, preparers, users, and academics. The AcSB then deliberated stakeholders’ feedback on its Exposure Draft. The Board tentatively decided to: (i) create a new balance sheet caption to present capitalized expenditures on implementation activities when the cloud computing arrangement is a software service; (ii) provide additional transition relief to address stakeholders’ concerns; (iii) defer the effective date of the proposed Accounting Guideline from January 1, 2023, to January 1, 2024, with early application permitted; and (iv) include an example to illustrate implementing an additional module to the software after commencement of accessing the software. The AcSB also tentatively decided to finalize certain other proposals in the Exposure Draft, subject to minor edits. The AcSB will seek the advice of its Not-for-Profit Advisory Committee from its July 2022 meeting and continue deliberations in September 2022.

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

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