Register   |   Print Page   |   Contact Us   |   Sign In
CSIA Presents: Software Revenue Recognition - Standard Changes
Tell a Friend About This EventTell a Friend

When: November 18, 2009
11:30am - 1:00pm
Where: Hein & Associates
717 17th St
Denver, Colorado  80202
Contact: Aimee Charlton

Online registration is closed.
« Go to Upcoming Event List  

Software Revenue Recognition- Standard Changes

On September 21, 2009, the Financial Accounting Standards Board (FASB) ratified a consensus regarding two Emerging Issues Task Force (EITF) issues that affect revenue recognition within, among others, the software industry, and will likely result in higher reported earnings in the short term. These changes also bring U.S. Generally Accepted Accounting Principles (GAAP) closer to international standards.
During this program you will learn:
  • What the new changes are and how they will affect your buiness
  • How to account for multiple element contracts under the new standards
  • How it will be applicable to your company’s revenue recognition policy 
  • Specifically what type of bundled contracts might be impacted such as hardware and software sales
Who should attend?  CFOs, Controllers, Bookkeepers, and all accounting professionals within the software and hardware industry!   So, "Tell a Friend," by clicking the button above and invite those from your company to attend. 
Ticket Information:
This program is free and member only (remember all employees of a company are members); space is limited so please RSVP in advance.

James N. Brendel, CPA, CFE, National Director of Audit Quality, Denver, Hein & Associates

Jim has over 25 years of public accounting experience providing audit and accounting services for both public and private companies. He specializes in Securities and Exchange Commission (SEC) reporting and provides public companies with compliance and consulting services for SOX 404 compliance, and other complex accounting issues. In addition, Jim provides litigation support services, including expert witness testimony.

Jim has developed a focus in the energy, manufacturing and distribution, technology, and real estate industries. He regularly assists clients with complex transactions such as mergers and acquisitions and initial public offerings (IPOs).

Jim’s publishing experience includes Software Industry Accounting, and Mergers & Acquisitions – Business Strategies for Accountants, both published by John Wiley & Sons.
More on the Issues:
 Both EITFs (Issue no. 08-1, Revenue Recognition with Multiple Deliverables and Issue No. 09-3, Certain Revenue Arrangements that Include Software Elements) are available for early adoption.  Additionally, both EITFs are effective on a prospective basis for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. An entity can also choose to adopt the EITFs retrospectively. Although early application is allowed, entities must adopt both EITFs in the same period using the same transition method. In addition, in the initial year of application, companies are required to make qualitative and quantitative disclosures about the impacts of the changes.
EITF Issue no. 08-1, Revenue Recognition with Multiple Deliverables
This issue, which applies to multiple-deliverable revenue arrangements that are currently within the scope of FASB Accounting Standards Codification (ASC) Subtopic 605-25, provides principles and application guidance on whether multiple deliverables exist, how the arrangement should be separated, and how the consideration should be allocated. It also requires an entity to allocate revenue in an arrangement using estimated selling prices of deliverables if a vendor does not have vendor-specific objective evidence or third-party evidence of selling price.
In addition to eliminating the use of the residual method, this guidance requires that entities allocate revenue using the relative-selling-price method, and significantly expands the disclosure requirements for multiple-deliverable revenue arrangements.

EITF Issue No. 09-3, Certain Revenue Arrangements that Include Software Elements
This issue focuses on determining which arrangements are or are not within the scope of the software revenue guidance in ASC Topic 985. It removes tangible products from the scope of the software revenue guidance if the products contain both software and non-software components that function together to deliver a product’s essential functionality. It also provides guidance on determining whether the software deliverables in an arrangement including a tangible product are within the scope of the software revenue guidance.
Until now, companies that make devices that blend hardware and software, such as the iPod and iPhone, were required to spread the related revenue over the life of the device. These types of devices were not envisioned when the original rules were written. The new changes will allow the manufacturer to "unbundle” and record hardware revenue up front.

Association Management Software Powered by YourMembership  ::  Legal