ASC 606 for Software Companies

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  • #1548412

    I apologize if this is the wrong forum for this question. My question is related to the ASC 606, the new revenue recognition standard. The steps for this standard are:
    (1) Identify the contract
    (2) Identify performance obligations
    (3) Identify the transaction prices
    (4) Allocate (3) based on (2).
    (5) Recognize revenue as promises are fulfilled.

    I read on this website (
    that the old standard uses VSOE and the new uses SSP.

    But what is the main difference between VSOE and SSP? I researched but they are both standalone prices if the products were to be sold independently rather than as a bundle.
    How will this new standard impact the software industry on average?

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