The Effects of Accounting Standards Updated 2009-13 On Revenue Recognition in Multiple-Deliverable Arrangements
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The issuance of Accounting Standards Update 2009-13 in October of 2009 substantially changed the requirements for recognizing revenue in transactions consisting of multiple elements. One of the main reasons for the issuance of this update was to increase the accuracy of reported revenue figures by aligning revenue recognition with the economic reality of multiple-element transactions. The research presented here examines the extent to which the issuance of ASU 2009-13 affected reported revenue figures of companies that enter into multiple deliverable arrangements, as well as the impact that this update had on the way in which investors interpret reported revenue figures.