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Stephen Widberg.
Stephen Widberg.-
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syedmushahid
- Topics: 19
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Hi Stephen
Can you please advise how to deal with below
Company A SELLS hardware,repair and maintaince and software supportHardware is sold for 3m$ and repair and maintainance for 1M$ and software support only sells occasionally for 0.5M$
How revenue will be recognised to below options
Option 1
Company A can sell hardware and maintainance for 3.5M$ where hardware is the integral to the contractOption 2
Company A sells for 3.7M$ which covers hardware. And maintaince with software supportOption 3 COMPANY A sells for 3.8M$ where harware and maintaince are integral part of the contract
Please advise
Kind regards
Syed raza
Stephen Widberg
- Topics: 10
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Decide which performance obligations are separate. Then allocate revenue based on standalone selling prices.
It may be worth you watching our revenue recognition lecture again.
syedmushahid
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