Accounting & the 3 Statements
A company pays a vendor to implement a cloud/SaaS system it doesn't own. Are those implementation costs capitalized or expensed (ASU 2018-15)?
Model answer
For a cloud computing arrangement that is a pure SERVICE contract (no software license conveyed), the ongoing hosting/subscription FEES are expensed as incurred. But under ASU 2018-15, IMPLEMENTATION…
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