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Technology Spotlight — Applying the revenue standard to identify the performance obligations in arrangements that include smart devices, updates, and cloud-based services

Published on: 20 Apr 2021

This Technology Spotlight discusses how technology entities that sell smart devices and related subscription services to customers should apply the revenue guidance in ASC 606 to determine whether to account for those offerings as multiple performance obligations or as a combined performance obligation. It also discusses the interaction between ASC 606 and ASC 842 in the accounting for arrangements that include the lease of a smart device and the sale of a subscription service.


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