Technology and Health & Life Sciences
Agency Discovers Revenue Standard to Significantly Impact Software Companies
Moody’s Investor Service says the Financial Accounting Standards Board’s (“FASB”) long-awaited revenue recognition standard will have a significant impact on the software industry. In a report issued on November 14, the credit rating agency found that the FASB’s standard will allow for faster recognition of revenue for numerous software companies. The result, according to Moody’s Vice President and Senior Accounting Analyst David Gonzales, is a drastic shift in revenue. Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), introduces a streamlined method wherein most companies must disclose the top line in their financial statements. This method replaces several. Read More.
Topics: Accounting Standards Update, FASB, Financial Accounting Standards Board "FASB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Software, Software Industry, vendor specific objective evidence "VSOE"
AICPA Revenue Recognition Task Force Issues Exposure Drafts
In response to Financial Accounting Standards Board Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants (“AICPA”) Revenue Recognition Task Force has issued the following revenue recognition exposure drafts for comment: Brokers and Dealers Issue 3-4: Underwriting Revenues Telecommunications Issue 15-8 – Determining the Transaction Price Comments on the exposure drafts are due January 2, 2018. The AICPA is seeking comment on the issues. The comment period ends January 2, 2018.
Topics: Accounting Standards Update "ASU", AICPA, AICPA Revenue Recognition Task Forces, American Institute of Certified Public Accountants "AICPA", Brokers & Dealers, FASB, Financial Accounting Standards Board "FASB", Revenue Recognition, Telecommunications
6 Problems Mobile Technology Can Solve for Manufacturing: Part 2
Customer demands and industry disruptors are making your job harder – but mobile technology could be the antidote for your organization’s needs. In part one of “6 Problems Mobile Technology Can Solve for Manufacturing,” we focused on mobile technology solutions that can help you with quality control and compliance, make it easier to fill custom orders more accurately and quote and close more deals. All those things are great – but that’s just the beginning. What about what mobile technology can do for your supply chain, for tracking leads in your sales cycle and even for your customer service? Part two explores the next level of what mobile tech can do. Read More.
6 Problems Mobile Technology Can Solve for Manufacturing: Part 1
Amazon is making your job in manufacturing harder. So are Lyft and Uber. And even Netflix. How? They are changing human behavior with their instant, or nearly instant, delivery models. Everyone expects to get what they want instantaneously. That raises the bar pretty high for everyone else. Answering clients’ demands for immediate gratification is just one of manufacturing’s challenges. Clients also want better quality, high levels of customization, personalized service – all at the absolute best cost. On the other side, your stakeholders want higher productivity and efficiency plus fatter profit margins, all while maintaining quality and answering to compliance. Read More.
FASB to Clarify Guidance for Collaborative Arrangements
The Financial Accounting Standards Board (“FASB”) will seek ways to make its guidance under Topic 808, Collaborative Arrangements, easier to follow. At its October 4 meeting, the FASB unanimously agreed to simplify the guidance to reflect the board’s initial goal of clarifying when partners in a collaborative arrangement must record revenue due to the venture’s cost reductions. The FASB also plans to examine the guidance for transactions that do not generate revenue for the partners, as well as consider guidance for what is the unit of accounting under Topic 808. FASB members and staffers said that the board will not. Read More.
Revenue Standard Could Have Major Impact on Software Industry
With the Financial Accounting Standards Board’s (“FASB”) new revenue recognition rules becoming effective in three months, the Accounting Standards Update (“ASU”) could have a major effect on the bottom lines of companies in the software industry. Under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), software companies will have to recognize more revenue when the sale occurs. However, companies in the software industry have long-term arrangements with customers, meaning revenue is usually recognized over the life of the contract. One software company already feeling the impact is Microsoft, which was an early adopter of the standard. Under the. Read More.