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To: Uncle Frank who started this subject	8/24/2000 9:15:05 PM
From: Mike Buckley	Read Replies (1) of 54805

The stuff copied below about the criteria that must be met for Siebel to recognize revenue is from their 10k. Though the previous focus of discussion with myself, Thomas and sditto was with regard to accounts recievable, novices should be reminded that if the dollars show up in accounts receivable they've also been recognized as revenue. --Mike Buckley ====================== "Prior to January 1, 1998, the Company recognized evenue in accordance with Statement of Position ("SOP") No. 91-1, software Revenue Recognition". Software license revenue was recognized when all of the following criteria had been met: there was an executed license agreement; software had been shipped to the customer; no significant vendor obligations remained; the license fee was fixed and payable within twelve months and collection was deemed probable. On January 1, 1998, the Company adopted the provisions of Statement of Position No. 97-2 "Software Revenue Recognition". Revenue is recognized under SOP 97-2 when persuasive evidence of an arrangement exists and delivery has occurred, provided the fee is fixed and determinable, collectibility is probable and the arrangement does not require significant customization of the software. Under SOP 97-2, revenue on multiple element arrangements is allocated to the various elements based on fair values specific to the Company. Professional services, maintenance and other revenues relate primarily to consulting services, maintenance and training. Maintenance revenues are recognized ratably over the term of the maintenance contract, typically 12 months. Consulting and training revenues are recognized as the services are performed and are usually on a time and materials basis. Such services primarily consist of implementation services related to the installation of the Company's products and do not include significant customization to or development of the underlying software code."

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