more-arw search

Q&A Forum

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

Michael Lugassy's Profile

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. 

Answers

Topic Expert
Bob Stenz
Title: Controller
Company: Silicon Valley start-up
(Controller, Silicon Valley start-up) |

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.

Jane Levin
Title: Corporate Controller
Company: Private
(Corporate Controller, Private) |

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.

Lyle Newkirk
Title: CFO
Company: Corrigo Incorporated
(CFO, Corrigo Incorporated) |

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.

Nancy Ordway
Title: CFO
Company: Fulcrum Technologies, Inc.
(CFO, Fulcrum Technologies, Inc.) |

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.

Suzann Sylvester
Title: Controller
Company: LAAx, Inc.
(Controller, LAAx, Inc.) |

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?

Konrad Sosnow
Title: Revenue Recognition Guru
Company: Konrad M. Sosnow & Associates
(Revenue Recognition Guru, Konrad M. Sosnow & Associates) |

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

3933 views
Topics
Products and Companies

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 content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.