As organizations accelerate AI adoption, business leaders face a new challenge of properly accounting for AI-related spending while maximizing return on investment (ROI). In this webinar, Crowe professionals explore the evolving accounting guidance for AI subscriptions, implementation costs, internally developed solutions, training data, and AI-enabled products. The discussion covers key considerations under Accounting Standards Codification (ASC) 350-40, ASC 606, and Accounting Standards Update (ASU) 2025-06 while also providing practical insights into measuring AI ROI and avoiding common reporting and disclosure pitfalls.
Highlights
- The state of AI adoption and why AI spend matters (0:59)
Gain insights from Crowe specialists who work with hundreds of companies on the major shift from experimentation to strategic investment, how AI is driving measurable business outcomes, and the three levels of AI adoption – from task automation to enterprise transformation. - Accounting for AI subscriptions, software-as-a-service (SaaS) platforms, and implementation costs (16:31)
Take a deep dive into the accounting treatment of AI software subscriptions. Learn when costs must be expensed, which implementation activities might qualify for capitalization, common mistakes involving training and prompt engineering, and how to evaluate cloud-based AI arrangements under existing accounting guidance. - AI training data, internal development, and the new ASU 2025-06 rules (30:39)
Explore how organizations should account for purchased training data, internally generated datasets, model retraining activities, and AI development projects. The session also examines the upcoming ASU 2025-06 changes, including new capitalization thresholds, development uncertainty criteria, and practical examples of capitalizable versus noncapitalizable AI development costs. - Revenue recognition and ASC 606 implications for AI-enabled products (50:09)
For software, SaaS, and technology companies embedding AI into their offerings, this section covers key ASC 606 considerations. Topics include performance obligations, contract modifications, variable consideration, stand-ready obligations, principal-versus-agent assessments, and pricing models for AI-powered features and services. - AI disclosures, Securities and Exchange Commission (SEC) scrutiny, and measuring ROI (1:00:18)
The webinar concludes with guidance on financial statement disclosures, useful-life assessments, impairment considerations, and SEC enforcement.
Note: Only attendees of the live webinar are eligible for CPE or CLE credit for qualifying webinars. If you view the webinar recording on this page you may not be eligible for CPE or CLE. For questions about CPE, contact [email protected].
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