It´s an accounting issue…

John Klee from TPI starts a series of posts on Accounting Considerations in Sourcing Environments. This is going to be interesting:

What accounting issues can impact the Sourcing strategy and/or RFP structure?

  • Asset ownership:  asset valuations, embedded leases in service contracts, lease capitalization
  • Start-up, transition and one time charges:  expensed vs. capitalization
  • Potential alliance agreements:  Related party transactions, gross vs. net revenue recognition
  • Regulatory compliance:  Sarbanes-Oxley Act, SAS70, etc
  • Pricing structure:  service provider revenue recognition
    • After collecting cash, recognizing the revenue streams related to those collections is often a Service providers management’s greatest concern

1 Response to “It´s an accounting issue…”



  1. 1 It´s an accounting issue (2) « Authsider Trackback on August 7, 2009 at 12:58 pm
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