New guidance from the Financial Accounting Standards Board on accounting for cloud computing costs will take effect for public business entities in 2020 and provide a welcome change for companies incurring significant implementation costs as corporate computing continues to migrate to the cloud.
FASB issued Accounting Standards Update No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, to reduce diversity in practice in accounting for costs of implementing cloud computing arrangements that are service contracts.
