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To: sibe who wrote (6154)	5/9/1998 12:30:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 10786

Re: Revenue recognition I have a few minutes before taking the kids out to lunch so here goes... First, I am positive ALYD does not count revenue "when the code is received" as you infer from what Pancho wrote. On the other hand, for obvious reasons, they also don't wait until the project is totally finished. Again, I refer you to JDN or Scott Edwards, who are accountants, but my guess is that just about every service-oriented company (like a Y2K vendor) recognizes revenue in stages. But it gets more complex than that because each client may have a slightly different contract and thus pay according to slightly different milestones. Perhaps JDN or Scott can say whether you have to be consistent in recognizing revenue from client to client, no matter when they pay you, or whether you only recognize revenue when you can bill for it. Perhaps that's where the confusion is. Since many early Y2K contracts are backloaded, i.e. most of the money is owed at the end, it would make little sense (to me, of course) to not have a consistent method. But since I believe your original question was based on thinking ALYD recognized revenue when the tapes arrived in the mail, perhaps such a discussion is a moot point. If not, how does revenue recognition concern you now? - Jeff P.S. THC. Gotta go, will address your questions later when I get back if no one else has.