Course Description:
This course provides an overview of the financial accounting and reporting requirements with respect to cloud computing arrangements, specifically those that do not include a software license and are accounted for as service contracts. Accounting considerations related to cloud computing arrangements have seen significant amendments in both 2015 as well as in 2018 through the issuance of certain FASB Accounting Standard Updates (ASUs). Accordingly, this course addresses these key developments and reflects the latest amendments prescribed by ASU No. 2018-15. The amendments prescribed by this ASU are effective for public business entities for fiscal years beginning after Dec. 15, 2019, and interim periods within those fiscal years. For all other entities, the amendments are effective for annual reporting periods beginning after Dec. 15, 2020, and interim periods within annual periods beginning after Dec. 15, 2021.
Learning Objectives:
Upon completion of this course, students will be able to:
- recognize what is meant by cloud computing arrangements
- identify key requirements prescribed by ASU No. 2015-05
- differentiate between computer software that is and is not used for internal-use
- recognize key characteristics and amendments prescribed by ASU No. 2018-15
- identify presentation requirements based on the release of ASU No. 2018
- identify the effective date and transition requirements for ASU No. 2018-15
Prerequisites: General understanding of basic accounting principles