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in actual forfeitures from those estimates. See Note 15 of Notes to Consolidated Financial Statements included for further discussion of stock-based
Recently Issued and Adopted Accounting Pronouncements
Revenue Arrangements with Multiple Elements and Revenue Arrangements with Software Elements — In September 2009, the Emerging Issues
Task Force of the FASB reached a consensus on two issues which affects the timing of revenue recognition. The first consensus changes the level of
evidence of standalone selling price required to separate deliverables in a multiple deliverable revenue arrangement by allowing a company to make
its best estimate of the selling price of deliverables when more objective evidence of selling price is not available and eliminates the residual method.
The consensus applies to multiple deliverable revenue arrangements that are not accounted for under other accounting pronouncements and retains
the use of VSOE if available and third-party evidence of selling price when VSOE is unavailable. The second consensus excludes sales of tangible
products that contain essential software elements, that is, software enabled devices, from the scope of revenue recognition requirements for software
arrangements. Dell elected to early adopt this accounting guidance at the beginning of the first quarter of Fiscal 2011 on a prospective basis for
applicable transactions originating or materially modified after January 29, 2010. The adoption of this guidance did not have a material impact to
Dell's consolidated financial statements.
Variable Interest Entities and Transfers of Financial Assets and Extinguishments of Liabilities — In June 2009, the FASB issued a new
pronouncement on transfers of financial assets and extinguishments of liabilities which removes the concept of a qualifying special purpose entity
and removes the exception from applying variable interest entity accounting to qualifying special purpose entities. See "Asset Securitization" above
for more information.
Credit Quality of Financing Receivables and the Allowance for Credit Losses — In July 2010, FASB issued a new pronouncement that requires
enhanced disclosures regarding the nature of credit risk inherent in an entity's portfolio of financing receivables, how that risk is...
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This document was uploaded on 02/22/2014 for the course ACCT 6330 at University of Texas at Dallas, Richardson.
- Spring '11