Entries by Rob Farmer

Deferred Revenue Accounting

What is Deferred Revenue? Deferred revenue is revenue you have received payment for but can not be realized. Think of it as pre-payment for goods or services that a company is expected to provide to the purchaser at a later time. Deferred revenue is also called unearned revenue because, as the name states, it has not […]

FASB Revenue Recognition

In May of 2014 the FASB and IASB issued a press release offering joint recommendations regarding revenue recognition (link to press release). This recommendation is especially important for software companies when dealing with customer contracts. Until this guidance was available there was no agreed upon standard between GAAP and IFRS standards. Why is revenue recognition […]

FASB Accounting Standards Update and Revenue Recogntion for SaaS Companies

The FASB (Financial Accounting Standards Board) and IASB (International Accounting Standards Board) recently published a joint revenue standard that changes the way companies can recognize revenue. It provides a single standard for all companies in all industries. (read the joint standards document here) How the FASB Revenue Standards Affects SaaS Companies If you use generally accepted […]