Flash Fact: Vendor-specific objective evidence (VSOE)

” Based on VSOE, allocation occurs by splitting the fee amongst the products and related elements – which is the price established by the vendor for the separate sale of each element and are able to recognize some of the revenue at delivery”.

“This (VSOE) allows companies that sell items that have software licenses, support contracts and hardware items recognizing [sic] the revenue of the hardware items on delivery, and the software license or support contract based on the fulfillment of the time the contract it is related to“.

” VSOE focuses on the fair market value of an item sold individually, as opposed to the assigned sales value of the item sold as part of a multiple-element bundle”

source: wikipedia

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