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Accounting Standards for Private Enterprises

AcSB Exposure Draft – Customer’s Accounting for Cloud Computing Arrangements


The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to issue ACCOUNTING GUIDELINE AcG-20, Customer’s Accounting for Cloud Computing Arrangements, in Part II of the CPA Canada Handbook – Accounting. The new Guideline would also apply to not-for-profit organizations (NFPOs) using the standards in Part III of the Handbook, as relevant.

The proposed Guideline:

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Thank you for your interest in the AcSB Exposure Draft, Customer’s Accounting for Cloud Computing Arrangements.

Read what stakeholders had to say and stay up to date with this project.


With the evolution of technology and the need for remote access, enterprises are increasingly entering into cloud computing arrangements. Stakeholders have informed the AcSB that there is diversity in the accounting for these arrangements. In addition, stakeholders have expressed concerns with the accounting outcome for expenditures on implementation activities in an arrangement that is a service contract and the complexity involved in applying existing guidance.   

In response to stakeholder input, the AcSB undertook a project to address the financial reporting issues related to cloud computing arrangements. The AcSB decided to address the issues through an Accounting Guideline because it thinks having the guidance in one location would be simpler for stakeholders and the guidance is specific to cloud computing arrangements. Accounting Guidelines are a primary source of generally accepted accounting principles. They set out how existing Sections shall be applied in specific cases or the Board’s conclusions on other particular issues of concern with respect to financial reporting.