09-29-2005, 09:08 PM
Where the agreement contains invoicing terms, this means when and how the invoices are raised revenue will be recognized on the basis of those invoices. This practice is followed by most of the organization in the software industry. It is very difficult to determine the stage of completion of a software that is under construction as a little mistake in the programming can destroy the entire project and you would be say back to 25%. SO invoicing is considered as a reasonable basis for revenue recognition.
Well as regards the question of cost, it would be recognized as and when incurred and charged to particular cost center.
If you have explored something diff. plz let me know coz this is very interesting example to understand revenue recognition in software industry.
Regards.
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If you are a politician then you are a lier, but if you are a lier you may not be a politician!
Well as regards the question of cost, it would be recognized as and when incurred and charged to particular cost center.
If you have explored something diff. plz let me know coz this is very interesting example to understand revenue recognition in software industry.
Regards.
------------------------------------------------------------------------------------------------
If you are a politician then you are a lier, but if you are a lier you may not be a politician!
