Does EITF 08-1 apply to large capital goods that transfer title at shipment?
Anonymous
| Sep 27, 2010
The following was a question posed by a Director, Management Reporting durring a recent Revenue Recognition webinar:
Would the EITFs also apply to large capital goods that transfer title at shipment, say quarter-end, but are not installed on sites until the next quarter? This is similar to the software /hardware examples. prsented during the webinar.
The webinar speakers will offer their thoughts, but please feel free to comment and share your perspective as well.
The webinar speakers will offer their thoughts, but please feel free to comment and share your perspective as well.
Topics:
Answers
Company: KPMG
Yes. An arrangement to sell equipment and related installation services is a common type of multiple-element arrangement that is in the scope of ASC Subtopic 605-25 (EITF 00-21 / EITF 08-1).