Software Entities Revenue Recognition Task Force 

    AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard.

    Task Force Members:

    • Nancy Salisbury, Ernst & Young LLP (Chair)
    • Aaron Anderson, PayPal
    • Sriprasadh Cadambi, KPMG LLP
    • Michael Coleman, PricewaterhouseCoopers LLP
    • Eric Domagalski, Symantec
    • Stacy Harrington, Microsoft
    • Stephen Hope, Autodesk
    • Sujit Kankanwadi, Synopsys
    • Wendy Kim, BDO LLP
    • Kevan Krysler, VMware
    • Neil Manna, CA Technologies
    • Gary Merrill, CommVault Systems
    • Craig Miller, Grant Thornton LLP
    • Marc Seymer, Adobe
    • Rich Stuart, McGladrey LLP
    • Joe Talley, Deloitte LLP
    • Paul Vigil, BMC Software
    • Corey West, Oracle
    • Alison Yara, IBM
    Staff Contact: George Fritz,


    Below is a list of potential revenue recognition implementation issues identified by the Software Entities Revenue Recognition Task Force. The list will be updated as the task force continues it discussions. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC).

    Issue # Description of Implementation Issue Status
    1 Identification and satisfaction of performance obligations: specifically addressing distinct licenses, including term licenses, and whether PCS components are separate performance obligations.
    This implementation issue discusses considerations in determining whether components of PCS, as well as licenses, are separate performance obligations when applying the guidance in FASB ASC 606.
    Submitted to AICPA RRWG
    2 Identify the performance obligation: options for additional goods and services
    3a Defining and Identifying Potential Price Concessions
    This implementation issue discusses sources of information a vendor may use to evaluate, identify and estimate the value of implied price concessions; how the portfolio approach may be used in this estimation; and how contracts with extended payment terms impact this estimation.
    Submitted to AICPA RRWG
    Estimating the Standalone Selling Price of Options that are Determined to be Performance Obligations
    This implementation issue provides illustrative examples of the methods in ASC 606-10-55-44 and 55-45 to account for options within an arrangement that are determined to be performance obligations because they provide a material right to the customer.
    Submitted to AICPA RRWG
    Identify/satisfy the performance obligation: renewal options in short-term licenses; mandatory PCS
    Determine the transaction price: estimating selling price; residual method
    Determine the transaction price: assessing significance of financing component
    Satisfy the performance obligation: combined unit of account; when control transfers for an intangible good
    Contract costs: issues related to incremental costs of obtaining contract
    9 Disclosure: levels of disclosure of disaggregated revenue
    10 Determine the transaction price: estimating the standalone selling price of PCS
    11 Identify the contract: master service arrangements and purchase orders


    Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below.

    Respondents should submit any comments including the implementation issue number to by the dates noted below:

    Issue # Comment Due Date

    The Software Entities Revenue Recognition Task Force recommends the following AICPA products for current revenue recognition issues:

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