Accounting
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Rev Rec for Arrangements that include only SW and PCS/Upgrades--SOP 97-2 be followed?
The following was a question posed by a CFO during a recent Revenue Recognition webinar: Undelivered PCS/ upgrades related to "essential" SW are scoped out of SOP 97-2 if HW is included in the arrangement? If an arrangement includes only SW and PCS/Upgrades, would the guidance of SOP 97-2 be fo…
1
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Revenue Recognition Accounting for Sales of Enterprise Software
The following was a question posed by a CFO during a recent Revenue Recognition webinar: We sell enterprise software to cable companies. The contracts call for 1) an annual license fee, 2) annual software maintenance and 3) an ad serving fee of $x per thousand impressions. We are planning …
1
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The Purpose of ESPs (Estimated Selling Prices under EITF 08-1)
The following was a question posed by a Controller during a recent Revenue Recognition webinar: I have a conceptual question. I'm not sure I understand the purpose of the ESP's. In the example given in the webinar by Mini, if the subscription is sold at $2,000, then why would you recognize …
1
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Bundled revenue scenarios outside of the software industry
The following was a question posed by a CFO during a recent Revenue Recognition webinar: Does the application of EITF 09-3 apply to other bundled rev scenarios outside of the software industry, e.g., investment consulting mgrs who bundle a recurring subscription with a non-recurring consult…
1
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In accounting for a leveraged ESOP we always held our breath regarding the year end stock price as this drove our company contribution.
Is that just the way it needs to be or is there some sort of weighted average that could be used?
1
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Optimizing Credit Card Processing/Combating Credit Card Declines
Our company has experienced rapid growth in the last 2 months in our credit card transactions - more than 5x typical monthly transaction volume. Unfortunately, we are now seeing a large number of declined transactions, with the majority of the reason codes being the less than helpful 'Declined'…
4
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Net Operating Losses During Bankruptcy
I have a very basic question put to me by a colleague. If a public company with venture capital backing files bankruptcy, what happens to the NOL's? How about if it is purchased or taken over by another company prior to bankruptcy? After bankruptcy? Thank you
5
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New Fixed Asset Includes 4 Years of Support....
I guess I am still in summer mode and I am having a hard time thinking what the correct answer is. My Finance Manager is setting up a new fixed asset, computer, that includes four years of support. We are leasing this over three years with a $1 buyout. The question she asked me is whether we sho…
4
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Share-in-savings contract - shipping costs
Have been approached by a company doing shipping analysis -- will do so on a share-in-the-savings basis. Obviously sounds good to know its not going to cost, etc. but not sure how to benchmark terms. Seems to me the two keys are % of savings shared and duration of the contract. Anyone got an…
6
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Approval Process for Telecom Bills?
I'm interested in the types of controls companies use for payment of telecom bills. Bill goes to Telecom/IT manager for approval (or) Bill goes to AP and is paid if $amount is within limits (or) Something else? Any feedback re. best practices is appreciated.
2
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Implementing EITF 08-1 / 09-3 (ASY 2009 13 & 14)
Has your company implemented or are you in the process of implementing new revenue recognition guidance under EITF 08-1 / 09-3 (ASU 2009 13 & 14)? Does your company sell both hardware and software in bundled arrangements? If so, we would like to hear about it how you are approaching th…
6
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Collection Agency
Does anyone know of a reputable collection agency that they would recommend? The intial claim is small, sub $2k, but I feel the workload may grow as the company I am helping grows. I know it is probably cheaper to write this off, but cash is cash. Thanks in advance. Rick
11
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Counterfeit bills
20% of our business is cash based. Recently a $100 bill was deemed by our bank to be suspect counterfeit and sent for testing to the US Treasury. The $100 was received for payment of services of $60 (for example) and $40 in change was given. How do we write off the sale? We can obviously wr…
1
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Benchmarking Maintenance Rates for a pure software company
I am trying to get a sense of where current maintenance rates are for a pure software company, and what that gets you. For example my company offers 24/7 phone/internet support + all major/minor updates & upgrades for 20% of net license fees.
4
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Revenue Recognition
Are you ready for both EITF 08-1 and 09-3 amendments that are to be applied prospectively to new or materially modified revenue arrangements in fiscal years beginning on or after June 15, 2010. These are significant changes to Revenue Recognition.
6
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Accounts Payable Software
Anyone have experience researching and implementing an electronic payment process that they can share? Best practices white paper on accounts payable software or electronic document management? Thanks.
17
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Measuring Customer Satisfaction Best Practices
Does anyone have any resources that they can direct me to for customer service surveys for both internal and external customers of the finance and accounting department. I am interested in survey questions directed at nonfinancial decision makers (internal) and shared services clients (external). …
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My auditor is wrong, how do I convince them to change their mind?
Without going into details, I believe that my audit firm and, specifically, our partner, are going the wrong way in an asset valuation discussion for our annual audit and I think GAAP backs me up. But we are approaching loggerheads on the issue. Any suggestions on how I get him to reconsider, while…
3
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Project Cost accounting
I have a new client who develops web sites for companies under a fixed bid arrangement. The client uses QB but has not kept track of time or project cost records. We are going to implement Harvest for time tracking. I have too questions: 1. Should I use QB Professional Service module. 2. what …
2
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Accounts Receivable - best practices
I would like to get some advice for best practices in A/R as it relates to credit limits and collections. We are a distributor and our customer base ranges from larger supermarkets down to smaller retailers. Generally the latter are harder to control. How do you assess how much credit to advance…
8
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Treatment of payments for R&D money spent by individuals or entities before incorporation
I'm new to the start-up realm and have what may be a rather simplistic question. If individuals or another entity (LLC) that preceded a C-Corp's formation put forth funds for some of the R&D for a product which the new C-Corp will complete the R&D on, what, if any, is the proper way to t…
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Just curious to know, as to what brought you here to "IFRS" group?
Just curious to know, as to what brought you here to this group? Is it the nature of your professions / job that requires you to obtain better understanding of the new accounting standards? Is it the fear of what will happen when U.S. GAAP is fully replaced with International Financial Reporti…
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IFRS: who's really doing what?
A board member just asked me about what I'm (our acct'g team) is doing with IFRS right now. I told him I'm just waiting and watching. From my perspective this thing is rolling out so slowly that anything can still happen. But before I completely stonewall him I wanted to see what other CFOs are …
9
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B2B Collection Agencies
I am seeking feedback and recommendations on collections agencies specializing in B2B. I would like to try this approach before writing these off as bad debt. I do not have much experience with external agencies and any experiences and advice you could share would be greatly appreciated.
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