Related Discussions

• Cloud Computing – AcSB

• Mar 23, 2021

• 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.

• Cloud Computing – NFPAC

• Feb 25, 2021

• 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.

• Cloud Computing – PEAC

• Feb 17, 2021

• At its meeting on February 17, 2021, the Private Enterprise Advisory Committee (PEAC) received an update on the AcSB’s recent discussions on the accounting for cloud computing arrangements. 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 Not-for-Profit Advisory Committee, at its March 2021 meeting.

• Cloud Computing – AcSB

• Feb 04, 2021

• At its meeting on February 4, 2021, the AcSB discussed an analysis on the accounting treatment under existing guidance for implementation costs incurred in a cloud computing arrangement. Specifically, the analysis focused on the customer’s accounting for the configuration or customization costs. The Board noted the complexity involved in applying the guidance in practice and discussed whether the complexity is warranted and if the accounting outcome would provide decision-useful information to financial statement users. The AcSB directed staff to seek input on possible solutions from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee and present a project proposal for the Board’s consideration at its March 2021 meeting.

• Cloud Computing – AcSB

• Dec 14, 2020

• At its meeting on December 14, 2020, the AcSB discussed the feedback from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on the accounting treatment under existing guidance for a fact pattern that outlines various expenditures an entity might incur to implement a cloud computing arrangement. The Board also discussed the Committees’ feedback on whether the accounting treatment reflects the economic substance of the expenditures. The AcSB directed staff to perform additional analysis on the accounting for cloud computing arrangements to help inform whether standard-setting activity relating to these arrangements is needed. The Board will continue its discussions at the February 2021 meeting. For information purposes, the AcSB also received an update on the IFRS Interpretations Committee’s discussion on the accounting for configuration or customization costs in a cloud computing arrangement in the context of IFRS Standards.