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VSCPA A&A Committee Supports FASB Proposal on Accounting for Fees Paid in a Cloud Computing Arrangement

The VSCPA’s Accounting and Auditing Advisory Committee (A&A) has commented on the Financial Accounting Standards Board’s (FASB) Proposed Accounting Standards Update (ASU), Intangibles — Goodwill and Other — Internal Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The committee was supportive of the idea, stating that the ideas set forth in the exposure draft support FASB’s “Simplification Initiative.”

The committee offered the following feedback:

  • Support for FASB’s proposal to include existing guidance currently used by cloud service providers to determine when an arrangement includes a license of software to provide guidance to customers in evaluating their accounting for fees paid in a cloud computing arrangement
  • Support for the position that the exposure draft may be applied prospectively or retrospectively
  • Support for the position that the proposal would be effective in annual periods beginning after Dec. 15, 2015

No votes have been submitted yet.