Contract disc
13 September 2012
Understanding the rules of revenue recognition – and the pressure it puts on software firms – will help purchasers to avoid being enticed into unnecessary and wasteful contracts.
Emma Clarke explains
Any buyer who deals with a US software company is likely to have come across the highly complex regulations that dictate software sales. Their suppliers may also have introduced them to terms including “software revenue recognition” and the complicated Securities and Exchange Commission (SEC) rules.
The arguments can be complex and difficult to challenge, but...