Software: Implementing the New Revenue Recognition Standard

The new joint accounting standard on revenue recognition will have a distinct impact on organizations in the software industry, and financial executives need to determine precisely what that impact will be. This article takes the financial executive in the software industry through the new standard’s five-step process for determining how much revenue should be recognized and when it should be recognized. Highlighted are implementation issues that software companies should consider so that they are prepared g when the standard goes into effect.