more-arw search

Q&A Forum

Bundled revenue scenarios outside of the software industry

Member's Profile
The following was a question posed by a CFO during a recent Revenue Recognition webinar:
Does the application of EITF 09-3 apply to other bundled rev scenarios outside of the software industry, e.g., investment consulting mgrs who bundle a recurring subscription with a non-recurring consulting project price?
The webinar speakers will offer their thoughts, but please feel free to comment and share your perspective as well.


David Elsbree
Title: Partner
Company: KPMG
(Partner, KPMG) |

ASU 2009-14 (EITF 09-3) applies specifically to sales of hardware along with software that is more than incidental to the tangible product as a whole.

ASC Subtopic 605-25 (EITF 08-1) generally applies to multiple-element revenue arrangements. However, there may be other Codification Subtopics that provide guidance on separation of deliverables and allocation of arrangement consideration to those deliverables that applies to specific industries or transactions. ASC paragraph 605-25-15-3A explains how the guidance on separation and allocation in ASC Subtopic 605-25 interacts with the separation and allocation guidance in other Subtopics. If there is no separation and allocation guidance in another Codification Subtopic that applies, the guidance in ASC Subtopic 605-25 applies.

I’m not aware of any industry-specific guidance that would apply to the fact pattern you’ve described, but I have no experience in the financial services area. Please consult with your auditors to determine whether other separation and allocation guidance may apply.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email [email protected] to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.