Software revenue recognition

✍ Scribed by Edward E. Nusbaum; Judith Weiss

• Publisher: John Wiley and Sons
• Year: 1996
• Tongue: English
• Weight: 494 KB
• Volume: 8
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.3970080116

✦ Synopsis

In this position, he is responsible for all accounting and auditing policies and overseeing all technical matters for clients. He is a member of the F U B s Emerging Issues Task Force, and a former member of the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants and the AZCPA Auditing Issues Task Force. Judith Weiss, formerly a senior manager in Grant Thornton's National Accounting and Auditing Department, is now a freelance writer on mutters related to accounting and auditing. he AICPA's Accounting Standards Executive Committee (AcSEC) recently issued an exposure draft (ED) of a proposed T Statement of Position (SOP), Software Revenue Recognition, which would supersede SOP 91-1, Software Revenue Recognition.

AcSEC decided to reconsider the guidance in that SOP because application of SOP 91-1 was inconsistent in practice and because certain issues not covered in that SOP needed to be addressed.

Scope

The proposal would apply, as did SOP 91-1, to revenue earned by all entities, not only software companies, that sell, lease, or otherwise market computer software, including resellers of software. However, it would exclude revenue earned on products or services that contain software that is incidental to the products or services as a whole.