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Software Companies Balk at Disclosure Rule for Cloud Setup Costs

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May 28, 2018

On May 24, 2018, Bloomberg BNA published an article on how software companies are pushing back against a proposed change by accounting regulators for how they are required to attribute costs associated with moving data to the cloud.

A pending disclosure rule that would require companies to reveal their full costs of moving to cloud platforms would be difficult to apply, and would offer little benefit to investors, some of the biggest global software companies told the Financial Accounting Standards Board in May.

The rules would require companies to capitalize the costs—to record an asset and then subsequently recognize the amount over the term of the cloud service arrangement. The accompanying disclosures would give investors a fuller picture of what those costs are in any given quarter.

Review the full article on Bloomberg BNA's website.

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