Plan for New Accounting Rules on Software Costs Moves Forward

U.S. companies may need to report cash amounts tied to their software expenditures, more of which would be moved off corporate balance sheets under a forthcoming proposal to update decades-old accounting rules. From a report: The Financial Accounting Standards Board voted Tuesday, 7-0, to propose requiring companies to report cash amounts tied to their software costs and help them determine when to expense or capitalize costs. The proposal is a scaled-back version of rule-making around these expenses. The standard setter wants to require U.S. public and private companies to provide a line item in their cash-flow statement to account for cash spending on software. Rules around software costs have gone largely unchanged since the 1980s and 1990s.

The proposal would cover use of software ranging from enterprise resource planning systems to hosting services and mobile banking applications, meaning it applies to almost every company. It would exclude development of software licensed to customers. Under the plan, companies would no longer have to evaluate the stage of their software project to determine whether to expense the costs on the income statement or to capitalize, or delay fully recognizing them, on the balance sheet. Companies are now required to expense their software costs as incurred on the income statement during the initial planning and post-implementation stages. When building the programs or applications, companies have to capitalize eligible costs. These current requirements involve significant judgment for companies, creating higher compliance costs. Instead, companies would only have to determine when to begin capitalizing software costs based on executives’ signoff for a project and the likelihood that the project will be completed and the software will carry out its intended use.

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FedEx’s Secretive Police Force Is Helping Cops Build An AI Car Surveillance Network

Twenty years ago, FedEx established its own police force. Now it’s working with local police to build out an AI car surveillance network. From a report: Forbes has learned the shipping and business services company is using AI tools made by Flock Safety, a $4 billion car surveillance startup, to monitor its distribution and cargo facilities across the United States. As part of the deal, FedEx is providing its Flock video surveillance feeds to law enforcement, an arrangement that Flock has with at least five multi-billion dollar private companies. But publicly available documents reveal that some local police departments are also sharing their Flock feeds with FedEx — a rare instance of a private company availing itself of a police surveillance apparatus.

To civil rights activists, such close collaboration has the potential to dramatically expand Flock’s car surveillance network, which already spans 4,000 cities across over 40 states and some 40,000 cameras that track vehicles by license plate, make, model, color and other identifying characteristics, like dents or bumper stickers. Lisa Femia, staff attorney at the Electronic Frontier Foundation, said because private entities aren’t subject to the same transparency laws as police, this sort of arrangement could “[leave] the public in the dark, while at the same time expanding a sort of mass surveillance network.”

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Asda IT Staff Shuffled Off To TCS Amid Messy Tech Divorce From Walmart

An anonymous reader quotes a report from The Register: Asda is transferring more than 100 internal IT workers to Indian outsourcing company TCS as it labors to meet deadlines to move away from IT systems supported by previous owner Walmart by the end of the year. According to documents seen by The Register, a collective consultation for a staff transfer under TUPE — an arrangement by which employment rights are protected under UK law — begins today (June 17). The UK’s third-largest supermarket expects affected staff to meet line managers from June 24, while the transfer date is set for September 16. Contractors will be let go at the end of their current contracts. Asda employs around 5,000 staff in its UK offices. Between 130 and 135 members of the IT team have entered the collective consultation to move to TCS.

The move came as private equity company TDR Capital gained majority ownership of the supermarket group. It was acquired from Walmart by the brothers Mohsin and Zuber Issa and TDR Capital in February 2021 at a value of 6.8 billion pounds. The US retail giant retained “an equity investment.” Project Future is a massive shift in the retailer’s IT function. It is upgrading a legacy ERP system from SAP ECC — run on-prem by Walmart — to the latest SAP S/4HANA in the Microsoft Azure cloud, changing the application software, infrastructure, and business processes at the same time. Other applications are also set to move to Azure, including ecommerce and store systems, while Asda is creating an IT security team for the first time — the work had previously been carried out by its US owner.

Asda signed up to SAP’s “RISE” program in a deal to lift, shift, and transform its ERP system — a vital plank in the German vendor’s strategy to get customers to the cloud — in December 2021. But the project has already been beset by delays. The UK retailer had signed a three-year deal with Walmart in February 2021 to continue to support its existing system, but was forced to renegotiate to extend the arrangement, saying it planned to move away from the legacy systems before the end of 2024. Although one insider told El Reg that deadline was “totally unachievable,” the Walmart deal extends to September 2025, giving the UK retailer room to accommodate further delays without renegotiating the contract.

Asda has yet to migrate a single store to the new infrastructure. The first — Yorkshire’s Otley — is set to go live by the end of June. One insider pointed out that project managers were trying to book resources from the infrastructure team for later this year and into the next, but, as they were set to transfer to TCS, the infrastructure team did not know who would be doing the work or what resources would be available. “They have a thousand stores to migrate and they’re going to be doing that with an infrastructure team who have their eyes on the door. They’ll be very professional, but they’re not going above and beyond and doing on-call they don’t have to do,” the insider said.

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AMD Is Investigating Claims That Company Data Was Stolen In Hack

AMD said on Tuesday it was looking into claims that company data was stolen in a hack by a cybercriminal organization called “Intelbroker”. “The alleged intrusion, which took place in June 2024, reportedly resulted in the theft of a significant amount of sensitive information, spanning across various categories,” reports Hackread. From the report: In a recent post on Breach Forums, IntelBroker detailed the extent of the compromised data. The hacker claims to have accessed information related to the following records: ROMs, Firmware, Source code, Property files, Employee databases, Customer databases, Financial information, Future AMD product plans, and Technical specification sheets. The hacker is selling the data exclusively for XMR (Monero) cryptocurrency, accepting a middleman for transactions. He advises interested buyers to message him with their offers.

The reputation of IntelBroker in the cybersecurity community is one of significant concern, given the scale and sensitivity of the targeted entities in previous hacks. The hacker’s past exploits include breaches of: Europol, Tech in Asia, Space-Eyes, Home Depot, Facebook Marketplace, U.S. contractor Acuity Inc., Staffing giant Robert Half, Los Angeles International Airport, and Alleged breaches of HSBC and Barclays Bank. Although the hacker’s origins and affiliates are unknown, according to the United States government, IntelBroker is alleged to be the perpetrator behind one of the T-Mobile data breaches.

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