Invest or Not to Invest: Accounting for Cloud Computing for Utility Companies Kelly Ha
OVERVIEW
This study delves into the relation between accounting practices and the investment decisions of utility companies concerning cloud computing technologies. In today's dynamic business environment characterized by rapid technological advancements and evolving regulatory frameworks, utility firms face a myriad of challenges when formulating investment strategies. One crucial aspect of these decisions is the treatment of cloud computing expenses – whether to capitalize them or expense them. The choice between capitalization and expensing holds significant implications for utility companies, affecting their financial reporting, profitability metrics, and regulatory compliance. Through a comprehensive analysis of financial data and rate case information spanning several years, our research aims to elucidate the impact of accounting treatment on investment behaviors within the utility sector. Understanding this relationship is imperative for both accounting professionals and utility decision-makers, as it underscores the critical importance of accounting standards in shaping strategic investment decisions. By shedding light on these intricate dynamics, our study seeks to highlight the crucial role of accounting in informing investment strategies and facilitating informed decision- making in regulated industries. Ultimately, this research contributes to a deeper understanding of how accounting practices influence strategic decision-making, emphasizing the vital importance of accounting considerations in utility companies' investment decisions.
44 | Summer Research Fellowship
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