"Conceptually, revenue recognition is easy to unde
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Posted On: 12/12/2018 11:33:00 AM
"Conceptually, revenue recognition is easy to understand. For example, a $120,000 annual subscription fee might simply be recognized as $10,000 per month during the subscription period.
In practice, revenue recognition can be extremely complicated as standards boards and regulatory agencies have established complex rules and guidelines to rein in on aggressive revenue recognition actions taken to inflate actual corporate performance of public companies. Revenue recognition can become extremely complex when you bundle services or support with your subscription, commit to delivery of any non-standard functions/capabilities, or when you agree to some customer acceptance criteria (“out clauses”)."
One of the bullets. Not on how you report it but on how someone calculates it:
"How an investor or strategic acquirer calculates your revenue may differ dramatically from how you report revenue. In the end, how they calculate revenue is the only thing that matters!"
https://www.saasoptics.com/saaspedia/saas-rev...ecognition
In practice, revenue recognition can be extremely complicated as standards boards and regulatory agencies have established complex rules and guidelines to rein in on aggressive revenue recognition actions taken to inflate actual corporate performance of public companies. Revenue recognition can become extremely complex when you bundle services or support with your subscription, commit to delivery of any non-standard functions/capabilities, or when you agree to some customer acceptance criteria (“out clauses”)."
One of the bullets. Not on how you report it but on how someone calculates it:
"How an investor or strategic acquirer calculates your revenue may differ dramatically from how you report revenue. In the end, how they calculate revenue is the only thing that matters!"
https://www.saasoptics.com/saaspedia/saas-rev...ecognition
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