Bloomberg Tax
Feb. 6, 2023, 5:24 PM

State, City Accounting Plan Tackles Cloud Computing Arrangements

Nicola M. White
Nicola M. White
Reporter

The accounting rulemaker for states, cities, and counties proposed guidance Monday to help state and local governments navigate existing accounting rules for subscription-based information technology arrangements.

The proposal addresses the single issue of whether a cloud computing arrangement meets the definition of a subscription-based information technology arrangement, as defined in Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements.

  • The proposed answer: It depends on whether the cloud computing contract conveys control of the right to use the underlying information technology assets, as detailed in GASB Statement No. 96, the proposal says.
  • The public has until March ...