Author ORCID Identifier
https://orcid.org/0009-0004-4265-0893
Document Type
Thesis
Date of Award
2026
Degree Name
Master of Professional Accounting (MPAcc)
Department
Business
First Advisor
Nicholas E. Wilson
Abstract
Cloud computing has become a central component of firms’ information technology infrastructure, yet the accounting treatment and disclosure of cloud-related expenditures remain subject to managerial judgment under ASC 350-40. This thesis examines whether variation in cloud˗computing disclosures is associated with differences in firms’ information environments and reporting behavior. Using textual analysis of 10-K filings for U.S. public firms from 2004 to 2025, the study constructs measures of cloud-related disclosure volume, optimistic tone, and linguistic intensity. It examines their association with analyst forecast error, analyst forecast dispersion, financial statement comparability, and real earnings management. The results indicate that cloud disclosure characteristics are most strongly associated with analyst disagreement. Specifically, optimistic cloud-related language is associated with greater analyst forecast dispersion, whereas more decisive disclosure language is associated with lower analyst disagreement. In contrast, cloud-related disclosure measures exhibit weaker associations with analyst forecast error and financial statement comparability. Additional evidence indicates that greater cloud disclosure volume is associated with lower real earnings management, suggesting that more extensive disclosure may reflect a broader posture of reporting transparency. Overall, the findings suggest that how firms describe cloud-computing expenditures can meaningfully shape external users' interpretation of the economics underlying these investments.
Keywords
Not Given
Number of Pages
58
Publisher
University of South Dakota
Recommended Citation
Askar, Salma, "CLOUD-COMPUTING COSTS AND FINANCIAL REPORTING: HOW CLASSIFICATION AND DISCLOSURE CHOICES SHAPE COMPARABILITY AND VALUATION" (2026). Dissertations and Theses. 429.
https://red.library.usd.edu/diss-thesis/429