The following was a question posed by a CFO during a recent Revenue Recognition webinar :
We have some transactions that are sold on a perpetual basis and some that are sold on a subscription (term) basis. For our perpetual transactions we do not have VSOE on undelivered items so we adopt subscription accounting and amortize all revenue (software & professional services, including PCS) over the PCS term. Under the new rules would we be required to book software revenue up front based on ESP?
The webinar speakers will offer their thoughts, but please feel free to comment and share your perspective as well.