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Task Force to Release Consensus-for-Exposure on Cloud Computing Implementation Costs

Emerging Issues Task Force (“EITF”) members plan to release a consensus-for-exposure concerning EITF Issue No. 17-A, “Customer’s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract.” The consensus-for-exposure is likely to address income statement alignment of implementation costs expensed with other expenses related to a cloud computing contract. The EITF has yet to announce whether the changes from Issue 17-A can be applied via analogy to contracts outside of the project’s scope. Such contracts include those that allow the use of intangible assets. In related news, the. Read More.

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EITF Reaches Consensus-for-Exposure on Restricted Cash

At its March 3rd meeting, the Emerging Issues Task Force reached a consensus-for-exposure in regard to 16-A, “Restricted Cash.” The Financial Accounting Standards Board is expected to discuss this consensus-for-exposure at a meeting later this month. If ratified, the consensus-for-exposure will be open for comment. While no final consensuses were reached at the meeting, the EITF also discussed 15-F, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The EITF will hold its next meeting on Thursday, May 12th.

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