[mgnyc]

anybody have good insight as to why one of the two requirements of revenue recognition for a multiple deliverable arrangement, is that “if there is a right of return for delivered item, the undelivered item must be substantially in control of vendor”.???

why would the right of the customer to return an item that I as the vendor posses have an impact on whether revenue is recognized on an item that I have delivered.

I would more expect it to say that the customer must be in possession of an item for the vendor to recognize revenue.

this comes from Wiley FAR 2012 top of page 53

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77