Overview of and Accounting for Cloud Computing

Abstract

It is clear that cloud accounting has revolutionized and changed the lives of many small and large business owners. Everyone has their own version of where and when the cloud originated. Many put the date back to 1955, when the idea of computing timeshares emerged. In those days, cutting-edge commercial computers, like the IBM 702, took up roughly the square footage of a roomy Brooklyn apartment and cost just about as much to rent ("A brief history.” 2019). A new implementation cost in Cloud Computing arrangement was proposed by the Financial Accounting Standards Board (FASB) to clarify that a customer has a hosting arrangement. This article addresses the diversity in accounting and the cost incurred in hosting arrangement in a service contract. Some entities would defer certain implementation costs incurred during the application development stage. Entities would expense other costs as incurred like planning, training, maintenance, and data conversion. Cloud Computing uses hosted services over the Internet to access services and different resources to perform jobs with changing and dynamic needs.  Cloud Computing has changed the way companies do business with other businesses and the way their own data is stored.