Tensoft & Novadek co-sponsored a revenue recognition webcast on October 22, 2015 presented by Silicon Valley Revenue Recognition Expert Jeffrey Werner. This webcast was free for everyone and the attendees received 1 CPE credit. Some of the topics covered in this webinar were software revenue recognition for multiple element arrangements and the relative selling price method. Jeffrey’s webcasts have always been highly appreciated by attendees with great feedback such as: “All of us who attended the Webinar that was presented by Jeffrey Werner yesterday thought it was very informative and helpful.”
The slide and accompanying transcript below gives a glimpse of the valuable content that was presented in the webcast. To view all of the slides click here and see the entire recording, click here.
“In this slide, we have got 3 examples of how revenue would be recognized under the different methodologies, just to compare and contrast. So if you are under the old accounting standard for either software or tangible products – EITF 00-21 or ASC 985 (SOP 97-2) – and we don’t have VSOE, we would recognize the entire transaction ratable over the service period of the undelivered elements.
If we do have the VSOE, at the end of full residual method than we would deferthe value of undelivered items and recognize the value of the delivered items. That would be the residual method.
Under the relative selling price method, we would use the values of each one of the elements, come up with the relative percentages of the transaction and allocate that much of the revenue to each one of those elements.” (Partial transcription of the webcast.)
This free webcast provided something of a preview of the upcoming online training course on “Revenue Recognition for Technology Companies” on November 17 & 19. This 2-day webinar will dive into specifics and cover wide range of topics including general principles of revenue recognition, understanding services and contract accounting, revenue recognition for Cloud Computing or SaaS arrangements and multiple element arrangements under ASC 985 and ASC 605. Attendees can earn 7 CPE credits with this course.