Are Multiple Element Arrangements Giving You Separation Anxiety?
Hosted by: Ernst & Young's Global Technology Center
Technology companies increasingly provide multiple products and/or services (“deliverables”) to their customers as part of a single arrangement. Such arrangements create questions as to whether and how to allocate the arrangement consideration to the individual deliverables included in the arrangement. Additionally, restatements resulting either from the misapplication of revenue recognition principles or the improper allocation of arrangement consideration to the elements in a multiple element arrangement are becoming more common among technology companies.
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To address many of the revenue recognition questions arising from such arrangements, the Emerging Issues Task Force (EITF) reached a consensus on Issue No. 00-21, Revenue Arrangements with Multiple Deliverables. Issue 00-21 provides guidance relating to the ability to separate deliverables included in an arrangement into different units of accounting and the how to allocate an arrangement’s consideration to those units of accounting, when separable.
Please join Ernst & Young LLP panelists practicing in the area of the Technology Industry as they discuss:
- Issue 00-21 and how to determine when multiple deliverables included in an arrangement represent separate units of accounting
- How to implement leading practices around the processes that technology companies are putting in place to associated practice issues