Structuring Cloud Computing Arrangements to Ensure They Have a Positive Impact on Key Financial Indicators

Posted by Wendy Reedy on November 17, 2015

Wendy Reedy

In April 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance* on accounting for fees paid for cloud computing arrangements. How you structure your cloud computing arrangement will determine if the related fees are treated as an operating expense or as a fixed or intangible asset subject to depreciation or amortization. The determination of how these fees are structured may significantly impact earnings before interest, taxes, depreciation, and amortization (“EBITDA”), and other key financial indicators, which could impact financing covenant compliance or other third party operating performance analysis.  If your cloud computing arrangement fees are significant, treating them as …

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Safe Harbor Plans

Posted by Wendy Reedy on October 29, 2013

Traditional 401(k) plans are subject to restrictions on the amount of contributions that can be made by or on behalf of highly compensated employees (“HCEs”), …

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Liquidation Basis of Accounting

Posted by Wendy Reedy on August 15, 2012

Prior to the FASB recently issuing the proposed Accounting Standards Update (ASU), minimal guidance was present to apply The Liquidation Basis of Accounting. Consequently, there …

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