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.