At its meeting on February 25, 2021, the Not-for-Profit Advisory Committee (NFPAC) received an update on the AcSB’s recent discussions on the accounting for cloud computing arrangements. The Committee noted that the guidance needs to be clarified for both the customer’s accounting for fees paid in a cloud computing arrangement and the related implementation costs because NFPOs refer to financial statement concepts to determine the accounting in the absence of specific guidance.

The Committee also noted that some cloud computing contracts are complex, and the terms and conditions of the arrangement may not be transparent or may change as the cloud computing solution is implemented. The Committee also provided feedback on the staff’s analysis of different approaches to account for implementation costs incurred in a cloud computing arrangement that is a service contract. The AcSB will consider the Committee’s feedback, as well as feedback from its Private Enterprise Advisory Committee, in March 2021.

Review the summary of discussions on the AcSB's Web site.