If you adopt EITF 08-1 “prospectively” will you be able to recognize in the first year the revenue
Kurt Morrow (Marketing Coordinator, Proformative)
| Apr 18, 2011This question was asked by an attendee of a recent Proformatuve Rev Rec webinar: If you adopt EITF 08-1 “prospectively” will you be able to recognize in the first year the revenue which was deferred by lack of VSOE by applying ESP retrospectively?
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Company: Hein & Associates LLP
Under the prospective adoption method, revenue related to contracts entered into prior to the effective date will continue to be recognized based on the prior guidance. You would not be able to apply any of the provisions retrospectively, so the deferred revenue would be recognized on the same pattern determined when the agreement was originally accounted for.