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Revenue recognition: Key insights for technology companies

Webcast recap: Significant changes and transition considerations


As a follow-up to our webcast, Revenue recognition: Key considerations for the technology industry, watch a brief overview below of the significant changes affecting technology businesses brought about by the new guidance in Topic 606, Revenue from Contracts with Customers, of the Financial Accounting Standards Board’s Accounting Standards Codification. In addition, view a helpful discussion on transition considerations related to the new standards.

For detailed information watch our entire on-demand webcast, which upon completion, provides 1.5 CPE credits to eligible participants.

Discussion in this webcast excerpt involves the significant changes that are impacting the technology industry as a result of the standard, including the following:

  • Expanded definition of a contract, including evaluation and impacts of termination provisions
  • Contract-modification model
  • Changes and complexity in collectability assessment
  • Contract-option evaluation and accounting
  • Impacts on multiple-element arrangements, including significant changes related to evaluation of promises in a contract and allocation of transaction price
  • Post-contract customer support considerations
  • Timing of payment impacts (significant financing component considerations)
  • IP license guidance and impacts on timing of recognition
  • License renewals
  • Contract-acquisition cost and fulfillment cost evaluation and capitalization requirements
  • Significantly expanded and enhanced disclosure requirements

In this webcast excerpt, transition considerations are discussed, including the following:

  • Adoption approach
  • IT systems, processes and controls
  • Stakeholder engagement
  • Judgments and estimates evaluation and documentation
  • Financial metrics, key performance indicators and capital structure
  • Resource allocation
  • Transition duration
  • Tax implications



Revenue recognition featured videos

This 12-part video series covers elements of revenue recognition important to Topic 606 implementation for public and private companies.


Revenue Recognition Resource Center

This resource center provides information about the FASB revenue recognition standard, guidance, implementation ideas and tax implications.


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