Question:
Briefly describe the guidelines for recognizing revenue from the sale of software and other multiple-
deliverable arrangements.
Answer:
This guidance requires that if an arrangement includes multiple elements, the revenue from the
arrangement should be allocated to the various elements based on the relative fair values of the individual
elements. If part of an arrangement does not qualify for separate accounting, revenue recognition is
delayed until revenue is recognized for the other parts.
Briefly describe the guidelines for recognizing revenue from the sale of software and other multiple-
deliverable arrangements.
Answer:
This guidance requires that if an arrangement includes multiple elements, the revenue from the
arrangement should be allocated to the various elements based on the relative fair values of the individual
elements. If part of an arrangement does not qualify for separate accounting, revenue recognition is
delayed until revenue is recognized for the other parts.
