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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Melissa McAuliffe who wrote (1486)	7/20/1998 2:44:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 4509

Melissa, anything out past 12 months is considered long term, so it would be categorized as long-term deferred revenue alongside long-term debt. My interpretation of that classification is that according to the new software accounting rules the project must be usable in order for the company to treat payments as revenues and this project won't be complete for at least another year. I think your point about revenues has to do with the probability of collection of revenues -- not deferred revenues (which is unearned in any case). I think your second point is on target. It sure sounds like BAAN factored the account. Of course the problem with the new accounting rules is that if the revenue is not recognized, then neither are the matching expenses. TTFN CTC