Revenue Recognition for Software Companies: Chapter 1: The Five Steps

Effective dates for the new revenue recognition standards are looming. Are you prepared to navigate these complex standards?
One thing is clear: these standards will have a significant impact on the software industry. Citrin Cooperman, together with Moore Stephens, recorded a webcast discussion to help provide some direction. The webcast is part of a series of webcasts and supplemental materials focused on educating you about the new standards and what can be done to prepare.

[@subbaduvvuri3925]

Very Nicely Explained. Covered all the parameters in software Industry. Thank you.

[@jason1500]

This was very helpful. Thank you!

[@ayaa3227]

Thanks for the great video! Can software for software producing company be recognized as an asset before they sell it? If no where should it be reflected? Sorry if I missed this part from the video 🙏

[@ayaa3227]

Thanks for the great video! Can software for software producing company be recognized as an asset before they sell it? If no where should it be reflected? Sorry if I missed this part from the video 🙏

[@ayaa3227]

Thanks for the great video! Can software for software producing company be recognized as an asset before they sell it? If no where should it be reflected? Sorry if I missed this part from the video 🙏

[@ra4872]

IFRS15 requires that, in order for contract acquisition and retention costs to be capitalised, they must be incremental (i.e. costs that would not have been incurred had it not been for the acquisition/retention of the customer contract). IFRS15 does not determine how much costs should be capitalised or when. This is established in other standards such as IAS16 and IAS38. As a practical expedient, operators may expense these costs when incurred if the amortisation period is less than 12 months.