Specified upgrades for software contracts

Specified upgrades for software contracts – Entities may provide customers with the right to specified upgrades or enhancements as part of a software arrangement. Under IFRS 15, entities will need to evaluate whether the rights to receive specified upgrades or enhancements are promised goods or services and potentially separate performance obligations. If the specified upgrade is a separate performance obligation, a portion of the transaction price is allocated to it and revenue recognition is deferred until the specified upgrade is provided. Specified upgrades for software contracts

Specified upgrades for software contractsSome entities may account for a specified upgrade or enhancement as a separate identifiable component under current IFRS and allocate revenue to it, while others may account for it together with other components. … Read more

Post-contract support services

Post-contract support services software delivery includes promises for the right to receive services or unspecified upgrades after the licence period begins