Publication Year

2011

Keywords

Accounting, software, IFRS, software revenue

Disciplines

Accounting | Computer Engineering

Abstract

Software is a relatively new, fast-growing, and ever more integrated part of the US and global economy. Where 20 years ago, software was often a standalone product (e.g. Microsoft Windows), in today's world software is a key and indivisible part of thousands of products that are sold every day, like Apple's iPhone and iPad.

The accounting guidance for software revenue recognition in the United States is a relatively new and fast-growing body of literature. Each iteration of software rulemaking has become more precise, diminishing the ability of corporate managements to interpret the literature in diverse ways. For this reason, software exemplifies the "rules-based" model said to be used in the US, attempting to achieve meaningful financial reporting through detailed pronouncements that explicitly address how to interpret accounting principles in specific situations.

Department 1 Awarding Honors Status

Accounting

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

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