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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1690 |
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Elements may be considered separate if they either are or could be sold without the other elements. Revenue can be allocated among the elements based upon their fair value. Reliable, verifiable and objectively determinable fair values are often not available. In such cases, the revenue must be deferred until that evidence becomes apparent...
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In such cases, the revenue must be deferred until that evidence becomes apparent. The multiple element arrangement can often be treated as a single-element arrangement using appropriate revenue recognition principals. If an arrangement includes multiple deliverables or elements, no revenue should be recognized until all of the elements essential to functionality are delivered...
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