Customer's accounting for cloud-computing fees.

• Position: FASB

Existing GAAP does not include explicit guidance about a customer's accounting for fees paid in a cloud computing arrangement. Examples of cloud computing arrangements include software as a service, platform as a service, infrastructure as a service and other similar hosting arrangements. The FASB heard from stakeholders that the absence of explicit guidance resulted in some diversity in practice, as well as unnecessary costs and complexity for some stakeholders to evaluate the accounting for those fees.

In response, FASB decided (www.fasb.org/jsp/FASB/ Document_C/DocumentPage?cid=1176165941746&accepte dDisclaimer=true) to add amendments to Subtopic 350-40...