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U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
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U.S. GAAP
Codification |
| U.S. GAAP Codification Updates |
| Principles of Accounting, Intermediate Accounting, Advanced Accounting |
| Accounting Terms |
| Accounting Standards Update (ASU) No. 2009-13 |
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Accounting Standards Update
(ASU) No. 2009-13 |
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"Multiple-deliverable revenue arrangements" Issued in October 2009 Based on the EITF No. 08-1 Codification topic updated 605 Revenue Recognition 25 Multiple-Element Arrangements 1. ASU No. 2009-13 revised Codification Topic 605-25 [After ASU No. 2009-13] Use VSOE of selling price to allocate revenue to each element. If VSOE does not exist, use TPE. If TPE does not exist, use "best estimate" of selling price. Residual method is not allowed. VSOE: Vendor Specific Objective Evidence TPE: Third Party Evidence 2. EITF No. 08-1 revised EITF No. 00-21 [EITF No. 00-21] "Revenue Arrangements with Multiple Deliverables" For multiple deliverable arrangements, revenue is allocated based on VSOE of fair value VSOE: Vendor Specific Objective Evidence If VSOE of fair value does not exist, --> Combined deliverables are recognized --> as a single unit of accounting, --> not as separate units of accounting Residual method If VSOE of fair value of "undelivered items" exists, --> revenue of delivered items = (A) - (B) (A) Total revenue (B) Revenue of undelivered items "Reverse" residual method is not allowed. [EITF No. 08-1] "Revenue Arrangements with Multiple Deliverables" For multiple deliverable arrangements, revenue is allocated based on VSOE of selling price VSOE: Vendor Specific Objective Evidence If VSOE of selling price does not exist, --> use TPE of selling price TPE: Third Party Evidence If TPE of selling price does not exist, --> use "best estimate" of selling price Residual method is not allowed. |
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October 2009 |
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Accounting Standards Update (ASU) No. 2009-15 was issued --> update based on EITF No. 09-1 --> Own-share lending arrangements --> Codification topic 470-20 Accounting Standards Update (ASU) No. 2009-14 was issued --> update based on EITF No. 09-3 --> Software revenue --> Codification topic 985-605 Accounting Standards Update (ASU) No. 2009-13 was issued --> update based on EITF No. 08-1 --> Multiple-deliverable revenue arrangements --> Codification topic 605-25 |
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