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Technology Stocks : Enterprise Informatics -- Ignore unavailable to you. Want to Upgrade?

To: jackhach who wrote (2349)	4/6/1998 11:36:00 AM
From: Greg h2o	Read Replies (1) \| Respond to of 13797

Some interesting reading on software revenue recognition...if you have Acrobat, you may want to read it. Something for everyone to consider in purchasing any software stocks... If you want the whole 9pp, let me know. It's boring stuff, but here's the preface (by Robbi Stephens): SOFTWARE REVENUE RECOGNITION UNDER SOP 97-2 Marshall Senk (415) 693-3442 marshall_senk@rsco.com Eric B. Upin (415) 693-3441 eric_upin@rsco.com After December 15, 1997, the Accounting Standards Executive Committee's Statement of Position (SOP) 97-2 superceded SOP 91-1, which went into effect after December 15, 1991. We believe the most significant change from the 1991 ruling involves the new instructions used to determine fair value for the parts of multi-element software sales. Prior to the current guidelines, no specific instructions existed to determine how much revenue to allocate among the parts of a bundled sale, and in response, industry practices varied widely. In most cases, we believe the impact of the new SOP will be minimal as it seeks to expand and clarify issues already treated in SOP 91-1. While valuations may be volatile during the adoption of the new statute, we remain convinced that the underlying business opportunity facing the software industry remains compelling and believe that the consequent investment opportunity is among the most attractive within the technology and growth sectors.