Software revenue recognition may change under ASC 606, especially when distinct elements of PCS are determined to be separate performance obligations.
Software no longer has industry-specific guidance. See how to recognize revenue for Cloud-Software hybrid contracts under ASC 606. Extended example included.
Accounting Standards Codification (ASC) 606 places the responsibility on management to recognize revenue in a way that “depict[s] the transfer of promised goods and services to customers in an amount … [they] expect to be entitled,” per ASC 606-10-05-3. For…
Analysis of the three factors for determining separate performance obligations and assessing the timing of revenue recognition for installation and implementation services