Revenue Recognition Blog

Will your company's revenue disappear into a black hole?

[fa icon="calendar'] Feb 9, 2016 3:24:53 PM / by Sam Kerlin, Argon Advisors posted in Revenue Recognition, license revenue

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It might upon adoption of ASC 606 if you have time-based software licenses.

Many software vendors today offer their customers a software license but restrict the customer’s use of the software to a short period of time, let’s say 3-5 years.  This is often called a time-based or term-based license.  For many companies, a time-based license is a preferred alternative to selling an unlimited software license without a time restriction (known as a perpetual license).

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