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What is FASB cloud computing accounting standard?

FASB cloud computing accounting standard is related to the cost associated with the implementation of cloud computing services.


FASB issued a cloud computing accounting standard (on August 29, 2018) to reduce the complexity that was prevalent in accounting for the cost of services in cloud computing. FASB cloud computing accounting standard 


FASB stands for Financial Accounting Standards Board. It is a non-profit, private organization with a primary purpose to enhance generally accepted principles of accounting within the United States.


Cloud computing is one of the most advanced server solutions today. Several stakeholders had previously requested for FASB to issue additional guidelines relating to cloud server hosting because its guidelines were not explicit in that field.


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