Case 10-11 Solution

1. Is Eye Visions governing body with Holland hospital within the scope of ASC 985-605, Software: gross Recognition? In this case, the briny content of the Eye Visions arrangement with Holland Hospital include embedded computer bundle medical equipment and an initial pick to get a two-year separately priced maintenance agreement. In this case, becauseEye Vision has never sold, nor does it offer to sell, the Clear muckle Laser without the embedded software system because the software is necessary to finish the medical procedures for which the laser is intend, and Eye Vision has never sold, nor does it offer to sell, the Clear View Laser without the embedded software because the software is necessary to perform the medical procedures for which the laser is intended. So the software components and non software components of perceptible crossroad could be consider function together to furnish the touchable products essential functionality, so according the FASB codification 985-605-15-4 and 985-605-15-4A, the equipment and the software are excluded from the Software: Revenue Recognition., Accordingly, the initial option to purchase a two-year separately priced maintenance agreement on the Clear View would be nonsoftware deliverables excluded from the scope of Software: Revenue Recognition.

References from FASB codification ASC 985-605-15-4     The guidance in this Subtopic does not apply to the following transactions and activities: e. Software components of tangible products that are sold, licensed, or leased with tangible products when the software components and nonsoftware components of the tangible product function together to deliver the tangible products essential functionality. ASC 985-605-15-4A a. If sales of the tangible product without the software elements are infrequent, a rebuttable presumption exists that software elements are essential to the functionality of the tangible product. 2. What are the deliverables in this arrangement?... If you want to get a full essay, order it on our website: Orderessay

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