United States

KPMG Comments on FASB Proposal about Certain Cloud Computing Fees

Nov 25, 2014
From the Financial Reporting View

KPMG LLP recently commented on the proposed FASB ASU, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which would address whether a customer’s fees paid in a cloud computing arrangement are for the acquisition of a software license, for services, or both. KPMG supports the FASB’s efforts to define whether these arrangements include a software license or represent services, but believes that an important consideration for determining whether the arrangement includes a software license is whether a customer possesses the software within its own IT environment. KPMG also suggested modifications to the proposal to address diversity in practice for other aspects of these arrangements.

Read KPMG Comment Letter

Read Proposed FASB ASU