Buy custom Revenue Recognition at EA
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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 822 |
Essay's paper body
They state that through FY2007 they were able to determine VSOE and allocate revenue between the software and the on-line service independently. Beginning in FY2008 the required VSOE will not exist due to a change in pricing policy on these software bundles, thus forcing EA to defer revenue on the entire bundle over the expected service period...
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In FY2008, this revenue will be recognized on a straight-line basis over the six month period following product delivery.
Interestingly, EA states they intend to expense the cost of goods sold related to these certain transactions at the time the product is delivered. In the FY2007 annual report, deferred net revenue on packaged goods and digital content on the balance sheet was $23 million...
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