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Implementing EITF 08-1 / 09-3 (ASY 2009 13 & 14)

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Posted Fri, 07/30/2010 - 3:37am by Michael Lugassy (Director Business Financ)

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Has your company implemented or are you in the process of implementing new revenue recognition guidance under EITF 08-1 / 09-3 (ASU 2009 13 & 14)?

Does your company sell both hardware and software in bundled arrangements?

If so, we would like to hear about it how you are approaching the implementation phase. 

  • Accounting Policies & Processes
  • FASB
  • 2245 reads

Comments

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Will likely rely on Excel

by Bob Stenz (Corporate Controller) - 07/31/2010 - 5:24pm

I'm a controller for an appliance based company previously under software revenue recognition rules. We may early adopt 08-1/09-3 in 2010 and certainly will for 2011. We've reviewed some revenue recognition solutions from 3rd parties. My personal opinion is that these solutions are not flexible enough for all of the nuisances related to our business such that we'll resort to Excel...at least until such solutions become more mature. Excel has worked very well for us with 97-2 and should for 08-1/09-3, however, the solutions providers for revenue recognition will tell you that Excel cannot solve the new issues (ESP allocations, etc.) with 08-1/09-3. There's certainly no silver bullet...going with a tool means you may need to restrict your business to accomodate limitations of the tool -or- have complicated off-line adjustments. Excel requires a certain amount of upfront structure/thought and maybe prone to errors...but issues should be more easily be fixed/addressed.

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We are looking at software to

by Jane Levin (Corporate Controller) - 08/01/2010 - 10:52am

We are looking at software to help with our software rev rec conversion. Currently considering NetSuite and Softrax. There is simply too much transaction volume to do it by Excel. I think we would induce errors galore and we would have to integrate anything we do with our financial system, so we are trying to get a high level of integration and automation. Adoption is coming at us quickly and we're working hard to get there. I get the feeling, just based on how little conversation there is on this topic (not just at Proformative, but in my other finance/acct'g networking groups offline) that folks have not quite woken up to this one yet.

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NetSuite for Revenue Recognition

by Lyle Newkirk (CFO) - 08/02/2010 - 4:40am

We are and ASP software company have a significant amount of deferred revenue in multiple combinations. We use NetSuite to manage it and the cost is very reasonable and it works fine.

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Softrax

by Nancy Ordway (CFO) - 08/02/2010 - 11:15am

I used Softrax at a SaaS company that also sold some software on a traditional license/maintenance model and had professional services, Softrax worked just fine for all of the revenue streams.

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Softrax

by Suzann Sylvester (Business Unit Controller) - 08/18/2010 - 9:51am

Just curious on their pricing model - can you provide any information? Is it a flat rate (per month); is it based on revenue size or number of transactions or number of users?

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The clock is ticking...

by Konrad Sosnow (Revenue Recognition Guru) - 08/01/2010 - 4:39pm

My network of recruiters and software implementers has told me that companies generally have not started implementing 08-1. I expect a big rush to implement in the fall

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