The Task Force recommended to the FASB chairman that a separate Issue be added to the EITF agenda to consider changes to the accounting for multiple element arrangements under SOP 97-2.
The Issues are:
Issue 1 - Whether this Issue should modify the measurement criteria or the scope of SOP 97-2. The Task force decided that the issue should focuso n amending the scope of 97-2. Other task force members thought this should be discussed in context of FASB/IASB's review of revenue recognition.
Issue 2 - If the Task Force decides to change the scope of SOP 97-2, how the scope of SOP 97-2 should be modified. Task Force decided 97-2 should be modified such that the following products would be considered non-software deliverables and therefore be excluded from 97-2: Tangible products containing software components that function together to deliver the product's essential functionality.
Issue 3 - If the Task Force chooses to address measurement in Issue 1, how the measurement criteria within SOP 97-2 should be modified.
Issue 4 - If the Task Force chooses in Issue 3 to align the measurement criteria in SOP 97-2 with Issue 08-1, whether the resideual allocation method should be retained within SOP 97-2 if the Task Force decides to eliminate the residual allocation method for arrangements subject to Issue 08-1.
Issue 5 - If the Task Force chooses in Issue 3 to align the measurement criteria in SOP 97-2 with Issue 08-1, whether the subscription accounting guidance in paragraphs 48 and 49 of SOP 97-2 should be retained.
Issue 6 - Paragraph 37 of SOP 97-2 requires that the amount allocated to a specified upgrade right be reduced based on an estimate of customers not expected to exercise the right ("breakage"). If the Task Force chooses in Issue 3 to align the measurement criteria in SOP 97-2 with Issue 08-1, whether the guidance in paragraph 37 of SOP 97-2 relating to breakage should be retained.
Issue 7 - Paragraphs 43-47 of SOP 97-2 provide guidance on accounting for fixed fee license or reseller arrangements that provide customers with the right to reproduce or obtain copies at a specified price per copy for two or more software products. If the Task Force chooses in Issue 3 to align the measurement criteria in SOP 97-2 with Issue 08-1, whether this guidance should be retained or revised.
