Cloud computing arrangement (CCA)
A cloud computing arrangement is a hosting arrangement in which a customer accesses software it does not control. Where it is a service contract, which most rented AI access is, the fee is expensed as the service is received and only distinct implementation costs may be capitalized under ASU 2018-15. Under IFRS the IFRIC March 2021 decision generally expenses configuration IFRIC 2021.
Service contract vs license
The test is control: if the customer cannot take possession of and run the software, the arrangement is a service contract, not a license. That determination decides whether the fee is an expensed service or acquired software, and how the implementation cost is treated.
Posts to
Primary sources
- [S2] KPMG: Cloud computing implementation costs post ASU 2018-15 (US GAAP)
- [S6] IFRS Interpretations Committee: Configuration or customisation costs in a cloud computing arrangement (IAS 38) agenda decision, March 2021 (IFRS)
Ledger current as of 2026-07-24. A position and a citation, not accounting advice. See how we cite.