The Cost of Intelligence: Accounting for AI Infrastructure & Software Development Webinar
Overview
Investment in artificial intelligence is creating complex accounting questions for companies financing data centers, supporting customers’ infrastructure purchases, and developing AI-enabled software. Guarantees, leasing arrangements, and alternative funding structures require careful analysis of the parties’ obligations and the economic substance of each transaction. This webinar examines the accounting judgments behind AI infrastructure investments and evolving software business models. Our expert will discuss guarantees, vendor consideration, lease commencement and renewal options, and consolidation considerations. The program also addresses the capitalization of eligible AI-related software development costs and the revenue recognition implications of usage-based pricing. Participants will learn how to:
- Identify accounting issues arising from alternative AI infrastructure funding arrangements
- Evaluate lease and consolidation judgments involving guarantees, control, and economic exposure
- Assess software development costs and revenue recognition considerations as companies incorporate AI into their products
This webinar qualifies for 1 CPE Credit in NASBA’s Accounting Field of Study.
Objective
To enable CPAs, accountants and finance professionals to identify and evaluate the accounting judgments associated with AI infrastructure financing, leasing and consolidation arrangements, software development costs, and evolving AI-enabled software pricing models.
Emphasis
- Alternative funding structures for AI infrastructure
- Residual value guarantees and lease-payment guarantees
- Customer-of-last-resort arrangements, including put rights, call rights, and revenue sharing
- Consideration payable to customers and consideration received from vendors
- Off-balance-sheet commitments and related disclosure considerations
- Lease commencement and build-to-suit arrangements
- VIE consolidation and the primary beneficiary’s power and economic exposure
- Lease renewal options and the assessment of “reasonably certain”
- Capitalization criteria for AI-related internal-use software development costs
- Eligible direct development costs vs. administrative overhead, training, and maintenance
- Usage-based and token-based pricing models
- Revenue recognition for specified quantities of service vs. stand-ready obligations
Speakers
Angela Newell, Deputy Chief Accountant, BDO
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