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Is there any new guidance on the Capitalization of Implementation Costs?

We have a significant amount of the implementation cost from workday. The amount covers 1)subscription fee $500K, 2) training fee $50K ( part of the implementation standard what workday requires , but also good for our internal team) , 3) delivery assurance fee $50K --this is to ensure that we have implemented the software according to their standards.and 4) Consulting fee associated with the implementation $100K . Should we capitalize or expense them? my understanding is we should expense them since these are the service software contract. Can someone please share your thoughts? Thanks!

Answers

Anonymous
(Sr. International Accountant) |
Anonymous
(Sr. International Accountant) |
Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

There's more confusion, if any. I was just quoted in a story about this in Bloomberg BNA - https://www.sbaconsulting.com/bloomberg-companies-confused-about-upfront-fees-for-cloud-services-rule/

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