I encounter a question on that IFRS Software company. Here’s the case:
This company has been compliant with local GAAP. As it plans to IPO
on HK Exchange, it needs to prepare 2006, 2007 & 2008 financial
reports with 1/1/2006 as its date of transition. As it applies local
GAAP, and local GAAP does not have much requirement on Software
revenue recognition, the company has not applied VSOE to book its
various revenues from hardware, software, training, consulting and
maintenances activities. That is, it has booked them based figures
given by sales departments. The thing now is that it has around 1,000
contracts annually, so it’ll be onerous work, if it should do this
VSOE work.

Also, though IFRS has only little guidance under IFRS in respect of
multiple element transactions, there’s general principle that when a
transaction comprises multiple elements, each element is accounted for
separately. That’s why SOP 97-2 is referenced for this case. (Am I
right here that this company should reference SOP 97-2?)
Do you have any suggestions to ease the work for the company to apply
VSOE to allocate revenues?