Technology Industry Accounting Guide (June 2026)

June 2026

We are pleased to present the 2026 edition of Deloitte’s Technology Industry Accounting Guide (the “Guide”).

The technology industry ecosystem encompasses a wide array of entities, from enterprise software and software-as-a-service providers to hardware and semiconductor manufacturers. The technology industry has also experienced convergence with other types of businesses, creating subsectors such as fintech, health tech, energy tech, education tech, and auto tech, to name a few. Many entities have fueled the significant growth of the technology industry by embracing emerging technologies such as artificial intelligence (AI) and machine learning, everything as a service (XaaS) powered by the cloud, robotics, the Internet of Things (IoT), blockchain, and edge computing. Continuous innovation by technology entities produces novel business models while introducing potentially complex accounting and financial reporting matters.

Finance and accounting professionals in the technology industry face complex issues and must exercise significant judgment in applying existing rules to matters such as generative AI, revenue recognition (e.g., under the five-step revenue recognition model), software-related costs, acquisitions and divestitures, consolidation, stock-based compensation, leases, financial instruments, income taxes, initial public offerings (IPOs), and cash flows. To help technology entities work through some of the more difficult accounting and financial reporting issues related to these and other relevant topics, this Guide includes interpretive guidance, illustrative examples, and discussion of recent standard-setting developments.

Discussions that have been added or expanded since the publication of last year’s edition include those related to:

• New FASB Accounting Standards Updates (ASUs), specifically:
  • ASU 2025-04 on share-based compensation payable to a customer.
  • ASU 2025-06 on the accounting for and disclosure of software costs under ASC 350-40.
  • ASU 2025-07 on derivatives scope refinements and share-based noncash consideration from a customer in a revenue contract.
• Noncash settlement denominated in cash.
• Revenue contracts entered into in conjunction with a business combination or disposition.
• Accounting for remix and exchange rights.
• Effect of open-source software on allocating the transaction price when a value relationship exists.
• Accounting considerations related to adtech entities’ revenue arrangements.
• Software license reseller arrangements.
• Collaborative arrangements.
• Funded software development arrangements.
• Barter transactions.
• Termination clauses and penalties.
• Contract modifications.
• Software in a hosting arrangement.
• Distinguishing a stand-ready obligation from an obligation to provide a specific amount of services.