Technology companies are rejoicing over a new rule adopted by the Financial Accounting Standards Board yesterday that will accelerate revenue recognition for many of their products.
The FASB voted unanimously and without comment to adopt a consensus of its Emerging Issues Task Force to allow companies more flexibility in how they recognize revenue for products that are bundled with post-sale service or software updates. FASB Technical Director Russell Golden said the final guidance will be posted on FASB’s Website Oct. 2.
