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FASB proposes guidance on cloud computing arrangements

  • FASB document Image

Mar 01, 2018

The FASB has issued a proposed ASU, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract — Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements,” in response to the EITF’s consensus-for-exposure on Issue 17-A.

The proposed ASU is being released to clarify certain aspects of the FASB’s ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which was issued in April 2015. Specifically, the proposal would “align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).”

Comments on the proposed ASU are due by April 30, 2018. For more information, see Deloitte’s January 2018 EITF Snapshot as well as the proposed ASU and press release on the FASB’s Web site.

On March 2, 2018, the FASB issued for comment Proposed Taxonomy Improvements for Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract — Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements (a consensus of the FASB Emerging Issue Task Force). Comments on the proposed taxonomy improvements are due by April 30, 2018.

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