Software As A Service Accounting Treatment. Different than the accounting rules that software licensing companies employ. From the customers side of things theres some fairly new guidance that only covers the fees paid by the customer in a cloud.
For accounting purposes software is generally treated as an intangible asset. From the customers side of things theres some fairly new guidance that only covers the fees paid by the customer in a cloud. Getting Software as a Service SaaS Accounting and Financial Operations Right from the Start Eighty-four percent of new software today is delivered as SaaS.
In the absence of specific requirement in IFRS Standards the submitter asks about the accounting treatment and the staff has analysed the appropriate treatment by considering a whether the rights to access software are within the scope of IAS 38 or IFRS 16 Leases from the customers perspective.
It is a software license which needs to be purchased one time and can be used indefinitely. The revenue would be recognized on its own straight-line basis. Software as a Service SaaS1 Platform as a Service PaaS Infrastructure as a Service IaaS refers to software applications that are delivered over the Internet on demand and usually via subscription cloud providers host and manage the software and associated infrastructure and handle maintenance ie. Contracts containing a software license.