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Technology Alerts — Challenges Associated With Applying the New Revenue Standard

Identifying the Performance Obligations in a Hybrid Cloud-Based Arrangement (December 2019)

Technology Alert
December 2, 2019
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Technology Highlights — Challenges Associated With Applying the New Revenue Standard: Identifying the Performance Obligations in a Hybrid Cloud-Based Arrangement

Footnotes

1
For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
2
In accordance with ASC 606-10-55-54 and ASC 985-20-15-5, software subject to a hosting arrangement is a license of intellectual property (i.e., on-premise software) if (1) the “customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty” and (2) “[i]t is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software.”