State and local governments have new rules on how to report what they pay for cloud-based software programs.
Certain subscription-based programs like those offered by Oracle Corp. and Amazon Web Services must be accounted for as right-to-use assets on the balance sheets of states, cities, and counties. The payments they make for these subscriptions should be accounted for as liabilities, the Government Accounting Standards Board said in GASB Statement No. 96, which the standard-setter published on Friday.
“The new guidance should remedy existing inconsistencies in accounting and financial reporting,” GASB said in a statement.
- The accounting treatment for...