ARTICLE
Audio & Video View & Listen in New Window PowerPoints (PDF) Open in New Window AGENDA: I. Coping with COVID-19 Financial Relief: An Update of Loans, Funding and Other Relief and a Brief Review of Accounting Changes/Issues - Andy Rinzel, Partner, Nick Eichelman, Director, and Lauren Denton, Senior Manager, BKD CPAs & Advisors II. Enhancing Lives and Improving Outcomes Through Consumer Funds Management - Thomas G. Tirney, CFA, CMT, ChSNC, President, Arlington Heritage Group, Inc. III. INARF Legislative Update - Katy Stafford-Cunningham, Executive Vice President/COO, INARF IV. Adjournment Question for BKD CPAs & Advisors: Can you elaborate on the accounting software upgrades in relation to conversion costs. We are in the process of upgrading next year. Response: With any sort of internal use software, you have to first determine whether the contract meets the definition of a hosting arrangement Previous GAAP indicated if you fell into a hosting arrangement, that the implementation costs would not be capitalized This led to some variability in accounting and how software agreements were interpreted ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (subtopic 350-40) has changed that so now implementation costs for hosting arrangement are accounted for similar to non-hosted arrangement. Guidance on when to capitalize vs. expense are outlined below. This is largely unchanged. > Preliminary Project Stage 25-1 Internal and external costs incurred during the preliminary project stage shall be expensed as they are incurred. > Application Development Stage 25-2 Internal and external costs incurred to develop internal-use computer software during the application development stage shall be capitalized. 25-3 Costs to develop or obtain software that allows for access to or conversion of old data by new systems shall also be capitalized. 25-4 Training costs are not internal-use software development costs and, if incurred during this stage, shall be expensed as incurred. 25-5 Data conversion costs, except as noted in paragraph 350-40-25-3, shall be expensed as incurred. > Post- Implementation-Operation Stage 25-6 Internal and external training costs and maintenance costs during the post-implementation-operation stage shall be expensed as incurred. > Definitions of Stages per 350-40-55-3 a. Preliminary project stage 1. Conceptual formulation of alternatives 2. Evaluation of alternatives 3. Determination of existence of needed technology 4. Final selection of alternatives. b. Application development stage: 1. Design of chosen path, including software configuration and software interfaces 2. Coding 3. Installation to hardware 4. Testing, including parallel processing phase. c. Post-implementation-operation stage: 1. Training 2. Application maintenance. Meeting recordings will only be available for 1 year after the presentation, at that time, please contact the INARF office to view the recording.
AGENDA: I. Coping with COVID-19 Financial Relief: An Update of Loans, Funding and Other Relief and a Brief Review of Accounting Changes/Issues - Andy Rinzel, Partner, Nick Eichelman, Director, and Lauren Denton, Senior Manager, BKD CPAs & Advisors
II. Enhancing Lives and Improving Outcomes Through Consumer Funds Management - Thomas G. Tirney, CFA, CMT, ChSNC, President, Arlington Heritage Group, Inc.
III. INARF Legislative Update - Katy Stafford-Cunningham, Executive Vice President/COO, INARF
IV. Adjournment
Question for BKD CPAs & Advisors: Can you elaborate on the accounting software upgrades in relation to conversion costs. We are in the process of upgrading next year.
Response:
Guidance on when to capitalize vs. expense are outlined below. This is largely unchanged.
> Preliminary Project Stage
25-1 Internal and external costs incurred during the preliminary project stage shall be expensed as they are incurred.
> Application Development Stage
25-2 Internal and external costs incurred to develop internal-use computer software during the application development stage shall be capitalized.
25-3 Costs to develop or obtain software that allows for access to or conversion of old data by new systems shall also be capitalized.
25-4 Training costs are not internal-use software development costs and, if incurred during this stage, shall be expensed as incurred.
25-5 Data conversion costs, except as noted in paragraph 350-40-25-3, shall be expensed as incurred.
> Post- Implementation-Operation Stage
25-6 Internal and external training costs and maintenance costs during the post-implementation-operation stage shall be expensed as incurred.
> Definitions of Stages per 350-40-55-3
a. Preliminary project stage
1. Conceptual formulation of alternatives 2. Evaluation of alternatives 3. Determination of existence of needed technology 4. Final selection of alternatives.
b. Application development stage:
1. Design of chosen path, including software configuration and software interfaces 2. Coding 3. Installation to hardware 4. Testing, including parallel processing phase.
c. Post-implementation-operation stage:
1. Training 2. Application maintenance.
Meeting recordings will only be available for 1 year after the presentation, at that time, please contact the INARF office to view the recording.