Ask HN: Depreciation of AWS reserved instances?

1 points by carf 8y ago ↗ HN

Is it possible to depreciate the cost of AWS 3-year reserved instances? Researching GAAP guides and other resources I am still left with an ambiguous feeling. Is anyone doing this or not doing this and how/why? Thanks!

2 comments

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qwert12355 8y ago ↗

You can not depreciate it, the asset you have is the prepaid balance for services not yet rendered. As the service is rendered per period you will reduce the asset.

Take this as my opinion not as advice. I am not licensed to give you advice on this topic.

QuinnyPig 8y ago ↗

It can be done. Dedicated tenancy is generally required, and your auditor needs to be on board with it.