The guide for recognising revenue in the software industry is our collected insight on the application of International Financial Reporting Standards (IFRS) in this industry. This industry continues to be an area of rapid development in terms of products and sales strategies, and recent guidance from the IFRS Interpretations Committee shows that the accounting for this industry is also developing at pace. These new developments continue to introduce new complexities in accounting for software sales, in particular as it relates to cloud-based solutions, sales by intermediaries and renewals and modifications.

We hope that you find this publication useful in understanding the accounting for common transactions. Each solution is based on a specified set of circumstances. Entities must evaluate their own facts and circumstances which might differ from those in these solutions. The ongoing transformation of the industry will lead to variations in circumstances, requiring an individual case-by-case assessment of the accounting implications.

This publication would not have been possible without the input and cooperation of many people. Special thanks goes to Andrea Allocco, Katie DeKeizer, Elena Kostina and Helen Stokes.