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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. 2009-14 |
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Accounting Standards Update
(ASU) No. 2009-14 |
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"Certain revenue arrangements that include software elements" Issued in October 2009 Based on the EITF No. 09-3 Codification topic updated --> 985-605 Software Revenue Recognition 1. ASU No. 2009-14 revised the scope of Codification Topic 985-605 Tangible products that contain (A) and (B) are --> excluded from Codification Topic 985-605 --> if (A) and (B) "function together" --> to deliver essential functionality of tangible products (A) software components (B) nonsoftware components 2. Before ASU No. 2009-14 For tangible products that contain (A) and (B), rules of Topic 985-605 "applied" --> if (A) is "more than incidental" to the products 3. After ASU No. 2009-14 Rules of Topic 985-605 "do not apply" to --> tangible products that contain (A) and (B) --> even if (A) is "more than incidental" to the products --> if (A) and (B) "function together" --> to deliver essential functionality of tangible products Instead of 985-605, rules of Topic 605-25 apply to --> tangible products that contain (A) and (B) --> if (A) and (B) "function together" --> to deliver essential functionality of tangible products 4. Difference between 985-605 and 605-25 [985-605] Revenue is allocated based on VSOE of fair value If VSOE of fair value does not exist, --> revenue recognition is "deferred" until --> VSOE exists or all elements are delivered [605-25, after revised by ASU No. 2009-13 in October 2009] Revenue is allocated based on VSOE of selling price If VSOE of selling price does not exist, --> use TPE of selling price If TPE of selling price does not exist, --> use "best estimate" of selling price TPE: Third Party Evidence |
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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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