BTerrell Group Blog

Back in April of 2010, the Financial Accounting Standards Board published new accounting guidance for calculating an often challenging method for recognizing payments on certain forms of revenue. Published as “ASU 2010-17: Revenue Recognition – Milestone Method (Topic 605)”, and discussed in draft abstract form in “EITF 08-9: Milestone Method of Revenue Recognition” on RevenueRecognition.com, the method allows vendors to recognize revenue at the time that a contractual obligation has been fulfilled, instead of applying revenues systematically throughout the term of the contract. However, because of the complexity of dealing with contractual incentives, such as bonuses, the milestone method outlines a few criteria that must be met.

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An implementer’s view from the trenches

An ever-increasing number of businesses are adopting cloud-based ERP solutions, and the momentum shows no signs of slowing. We’ve all heard many of the touted benefits of Cloud ERP, such as rapid deployment and minimal IT requirements. But what kinds of companies are truly the best candidates for a move to the cloud? Who can benefit the most – and why?

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It is common for companies to partner with other organizations to provide goods or services for their customers. The new Revenue from Contracts with Customers(codified as ASC 606) rules recognize this fact, and provide recommendations for how you should handle the revenue associated with these products and services. It boils down to determining whether you are acting as the principal or the agent in the transaction. While this may sound simple enough, like many aspects of ASC 606, it gets complicated.

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The impact of ASC 606 for SaaS companies, Part 2

In our last post, we started the conversation about the impacts ASC 606, Revenue from Contracts with Customers, will have on SaaS companies. The impacts are broad, and significant enough to warrant continuing coverage – so here we pick up where we left off in an attempt to make sense of a confusing new landscape for software providers. A particular area of confusion surrounds when companies are to recognize revenue on term-licensing contracts that also include maintenance and updates.

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