To the Point - FASB proposes guidance on accounting for implementation costs in cloud computing arrangements


The FASB proposed requiring a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. The proposal would align the guidance for recognizing implementation costs incurred in a hosting arrangement that is a service contract with that for implementation costs incurred in an arrangement that includes an internal-use software license. The FASB also proposed new disclosures for implementation costs for all internal-use software and hosting arrangements.

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