Autonomy Accounts

Information from the former management team of Autonomy plc.

Accountancy Age posts analysis of HP/Autonomy accounting issues

January 17, 2014

Accountancy Age has published a concise analysis of the crucial differences in the treatment of revenue recognition under IFRS and US GAAP accounting standards. The author notes that under IFRS standards, revenue from sales to a reseller can be immediately recognised by the manufacturer:

“It is worth noting that there is no explicit prohibition in IAS 18 on the recognition of revenue immediately on a sale from a manufacturer to a reseller. IFRS is much less detailed and prescriptive than US GAAP, which has specific guidance on software sales – SOP 97-2. Indeed, it is these differences that the IASB’s joint revenue recognition project with the FASB sets out to fix.”

The full article can be read here: