Software Revenue Recognition: Not Just For Software Companies

Ernst & Young LLP has recently released guidance on Statement of Position 97-2, Software Revenue Recognition,as amended (SOP 97-2). Our new guidance is titled "Software Revenue Recognition, an Interpretation". This major revision to our previous guidance includes a number of positions that have not been previously published.

When SOP 97-2 first became effective, it was primarily software companies that focused on the standard. Other companies gave the standard little attention or ignored it entirely. However, the scope of SOP 97-2 is considerably broader, and all companies that market products or services which include a software component must consider the applicability of SOP 97-2.


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