Dear IMA Colleagues,
I am writing to you to ask if you can direct me to professional publications or any other reliable source(s) of
information that may provide guidance on whether some cloud computing costs can be capitalized or not. I have
been using the AICPA's "SOP 98-1 Accounting for the Costs of Comupter Software Developed or Obtained for
Internal Use" and more recently, "ASC 350-40 Internal-Use Software" as guidance for determining which costs
qualify as capitalizable software development costs.
Please consider this example: If a software provider only offers computational software via access to their cloud
(i.e. vendor’s server), and the Client uses the Vendor's software for its own software development and testing, can
the costs associated with accessing the cloud computing tools be included in the total costs incurred for software
development that will be eventually capitalized? Please share your thoughts on this new realm of Cloud
Computing services and the best source of guidance for determining which costs can be capitalized.
Thanks for your help,
Joe
Joe Nycum
Sr. Financial Analyst
Press Ganey Associates, Inc.
Outcomes driven. Performance strong.
574.234.8452
Fax: 574.245.3933
jnycum@...
pressganey.com
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