NEED FOR ACCOUNTING STANDARD FOR SOFTWARE

[faisal the gr8]

should we use revenue recognition methods of ias 11
in accounting for software developement or if someone is
making a huge project of making movies which can take 2 or 3
years bcos under the definition of ias 11 it seems that
those contracts r only for bridges or tunnels .what should we do ?

[jbladeus]

I am quoting the appendix of IAS 18, which is quite self-explanatory and might answer your question

<i>"19. Fees from the development of customized software are recognized as revenue by reference to the <b>stage of completion</b> of the development, including completion of services provided for post delivery service support."</i>

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Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

[coool_dude1]

I great new book on IAS is available at Adnan Book Stall, Urdu Bazar, Karachi

IAS 2003 (INTERPRETATION AND APPLICATION OF IAS)

I feel that this should be in the book shelf of every one dealing with IAS