Software revenue recognition

Software companies are faced with extremely complex accounting rules regarding Software Revenue and history has shown that application of these rules may lead to errors with a dramatic effect on the company's image.

The rules are constantly subject to change and additional guidance is issued rather frequently. On the other hand, with far less guidance available, IFRS reporters may struggle

in applying appropriate revenue recognition.

While a transition from US GAAP to IFRS appears a fait accompli, when it will happen remains uncertain. So, most of the global software industry will continue under SOP 97-2 until at least 2014. Yet, while US GAAP continues to apply, it will be imperative for software companies to begin soon to address the impending conversion.

How PwC can help 

Our renowned Software Revenue Recognition training and guidance is used all over the world to help our clients understand, apply and update their knowledge on Software Revenue Recognition and is taught by PricewaterhouseCoopers' Software specialists.

You can also see up to date interactive guidance on our dedicated software revenue recognition website: www.pwcrevrec.com