Enterprise Contracts In The IP Era: The Role Of Commitments

Sapronov, Walt
June 2006
Business Communications Review;Jun2006, Vol. 36 Issue 6, p54
Trade Publication
The article discusses on the impacts of revenue commitments on revenue recognition of business enterprises engaged in Internet protocol era in the U.S. The author cited that the higher the commitment, business enterprises would have greater revenue recognition based on the following points: specification of charges that contribute to the commitment; commitment would be reduced based on periodic review, technology upgrade, and other events; penalties would be imposed for failing to meet the committed revenue; and shortfall adjustment would be observed such as shuffling of charges.


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