What is Cloud computing implementation costs?
In short
A customer in a cloud computing (hosting) arrangement that is a service contract capitalizes the implementation costs that would be capitalized for internal-use software, and expenses them over the term of the hosting arrangement.
Key takeaways
- The term includes renewal periods the customer is reasonably certain to use.
- The capitalized costs are presented with prepaid hosting fees, and the expense in the same line as the hosting fees.
- Training and data conversion costs are generally expensed.
Where it's tested
FAR: Intangible Assets & Goodwill — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under US GAAP, internally generated research and development costs are: