IMA Answer Exchange > Question Thread

Can some costs associated with Cloud Computing be Capitalized?

Mon, 06 Feb 2012 14:06:44 +0000

Thread by Joseph Nycum

Dear IMA Colleagues,

I am writing to you to ask if you can direct me to professional publications or any other reliable source(s) of

information that may provide guidance on whether some cloud computing costs can be capitalized or not. I have

been using the AICPA's "SOP 98-1 Accounting for the Costs of Comupter Software Developed or Obtained for

Internal Use" and more recently, "ASC 350-40 Internal-Use Software" as guidance for determining which costs

qualify as capitalizable software development costs.

Please consider this example: If a software provider only offers computational software via access to their cloud

(i.e. vendor’s server), and the Client uses the Vendor's software for its own software development and testing, can

the costs associated with accessing the cloud computing tools be included in the total costs incurred for software

development that will be eventually capitalized? Please share your thoughts on this new realm of Cloud

Computing services and the best source of guidance for determining which costs can be capitalized.

Thanks for your help,

Joe

Joe Nycum

Sr. Financial Analyst

Press Ganey Associates, Inc.

Outcomes driven. Performance strong.

574.234.8452

Fax: 574.245.3933

jnycum@pressganey.com

pressganey.com

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Reinvestment for Cash Flow at IRR or NPV (1 Comment)

Fri, 03 Feb 2012 16:56:48 +0000

Thread by Johnny El Achkar

Hello Everyone ,

Would appreciate your assistance in explaining the difference between " NPV assumes that the firm can reinvest all cash inflows at the required rate of return whereby IRR can reinvest all cash inflows at the IRR ".

Thanks,

CMA Scoring (3 Comments)

Mon, 30 Jan 2012 13:05:41 +0000

Thread by Daniel Dodds

While I understand that the exam will be based on a scale of 0-500, I had some questions relative to questions answered correctly versus total amount of questiona answered.

Is it better to try to answer all 100 multiple choice questions, even if I am not fully sure of my answer or is it better to confidently answer less questions while answering them correctly?

Thanks for any guidance.

Result for Part 1 taken in Oct 2011 (19 Comments)

Sun, 11 Dec 2011 13:33:03 +0000

Thread by Juned Desai

Hi,

Did any one get part 1 result for exam taken in oct 2011?

Study Materials : I am trying to decide which study material to purchase to prepare for the CMA... (3 Comments)

Thu, 26 Jan 2012 14:12:06 +0000

Thread by Henry Pedrique

Study Materials : I am trying to decide which study material to purchase to prepare for the CMA...

Need foreign currency help (1 Comment)

Wed, 25 Jan 2012 15:54:13 +0000

Thread by Tabitha Stein

Hi,

The US based construction company that I work for as Accounting Manager has just started doing business outside of the United States. We have had consultants come in to help set up our JD Edwards system to handle these transactions. Does anyone know of a good resource to use in order to learn more about how exchange rates work in recording transactions on a daily basis as well as monthly revaluations? This is new to most of us, so we are looking for some general education in this area.

Thanks for your help.

Tabitha

Displaying CMA credential disallowed in Texas (5 Comments)

Sun, 22 Jan 2012 22:53:06 +0000

Thread by Keith Rosicker

Anyone else have this problem in Texas or another state?

I hold the CMA and the Enrolled Agent credentials. About a year ago, I moved to Texas and set up a business to prepare tax returns and provide management accounting services to businesses. My wife got a position here, so I left my old job in California to be with my family. On my website, I put the CMA and EA initials after my name, described myself as a Certified Management Accountant and Enrolled Agent, and mentioned my 15 years experience in corporate accounting and taxation.

Then last week I received a "Cease and Desist" order from the Texas Board of Accountancy, saying that I was practicing public accounting without a license. Obviously, that is not true, but they included copies of my website and highlighted the items that I needed to remove. The items included: the CMA after my name, description of management accounting and the Certified Management Accountant designation, as well as my mentioning corporate accounting as part of my experience.

I reluctantly edited my website, but I feel really bad about being forced to remove the CMA credential that so many of us worked hard to obtain. Also, as I take personal integrity and ethics very seriously, this Cease and Desist order which came without any warning whatsoever, will probably go on some sort of record which is a bit upsetting.

Does this mean that no CMA in Texas is allowed to display their credential on a resume or other advertisement? I never had a problem in California where I had spent most of my career. How does this affect people wishing to set up a "CMA Firm" where they provide services, such as interim Controller function, strategic financial analysis, budgeting, forecasting, etc.? Any other thoughts or suggestions? Thanks!

-Keith

the CGMA designation (1 Comment)

Wed, 14 Dec 2011 14:09:08 +0000

Thread by Ibrahim Taha

Dears,

The AICPA and CIMA will lunch in January 2012 their Joint credential , the Chartered Global Management Accountant, I don't know if you know this or not, but I hope to know what your expectaions for this certificate and what is the affect on the CMA.

Thanks

To know more about the CGMA visit this site www.cgma.net

Rebilling mileage reimbursement - Revenue or Contra-Expense? (2 Comments)

Mon, 09 Jan 2012 21:12:29 +0000

Thread by Christopher Mishler

A fellow IMA member asked this question, so I'm asking you:

My large Denver based non-profit client has an accounting question that I need some help with. They have a number of government agencies, like the EPA, who award grants to them for their projects concerning Denver and Colorado environmental issues. The company has a company van they use to transport volunteers to various sites and carry supplies for specific projects. The grantors allow my client to bill them 51 cents per mile (in 2011) for mileage on the vehicle related to their projects. This would be in addition to the actual grant amount.

The question involves the accounting for the company vehicle mileage reimbursement. I think this reimbursement would be recorded as revenue, rather than an offset to vehicle operating expenses. I would set up a separate revenue account for that purpose.

Do you have experience with situations where a client or customer pays a company for company vehicle mileage at the standard IRS reimbursement rate? How would you handle it?

PhD researcher in Lean Accounting

Sat, 07 Jan 2012 11:56:04 +0000

Thread by Manjunath Seshagiri Rao

Content

Hi,

Lean accounting is an upcoming and a challenging new area in the field of management accounting.

I am a PhD candidate working on my thesis on cost accounting practices in lean manufacturing enterprises. You can see the published article on my research in the Management Acccounting Quarterly- Fall, 2011.

The article reference is as follows:

Exploring the role of standard costing in lean manufacturing enterprises: a structuration theory approach"- Rao, Manjunath & Bargerstock, Andrew. Management Accounting Quarterly, Fall 2011. pp 47-64

I am a CMA and I also have Grad "CWA credentials from Institute of Cost and Works Accountants of India (ICWAI). I also made a poster presentation at the 92nd Annual Conference of IMA in June 2011 at Orlando, Fl. I was awarded national students award at the lean accounting summit, September 2011 of Lean enterprise institute.

I am currently lookng for openings in the area of cost accounting in manufacturing enterprises.I expect to complete my thesis by June 2012.

Manjunath Rao

Link

Exploring the role of standard costing in lean manufacturing enterprises