FASB Issues Final Rules On Cloud Computing Software Arrangements

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April 15 — The Financial Accounting Standards Board issued final rules to clarify that if a cloud computing arrangement includes a software license, a customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.

If a cloud computing arrangement doesn't include a software license, the customer should account for the arrangement as a service contract, the FASB states.

The guidance, issued April 15, will not change generally accepted accounting principles for a customer's accounting for service contracts, the FASB says.

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