When I think about exciting things happening in 2018, I think Winter Olympics in South Korea, the forthcoming nuptials between Prince Harry and Meghan Markle, and maybe the release of the movie “The Black Panther”. However, the FASB has some exciting things for us too this year! If you attended the Nicus Software 2-day IT Finance Boot Camp with us last week in Orlando, FL, you are already aware of these FASB topics but, in case you missed it, here’s the synopsis:
- Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842)
- Effective Fiscal Years beginning after 12/15/18 for public entities or certain not-for profits and after 12/15/19 for all others
- Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months (regardless of whether it is a capital lease or operating lease).
- Emerging Issues Task Force (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
- Proposal released March 1, 2018
- Amendment proposed update would align the requirements for capitalizing implementation costs incurred in a hosting arrangement that’s a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (along with hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that’s a service contract wouldn’t be affected by the proposed changes.