Technology and SaaS accounting
Plain-English guides to the accounting issues technology and saas companies face, each with a worked example from the industry.
Technology and SaaS accounting guides
- SaaS accounting: the key issues3 minute readSaaS accounting explained: subscription revenue over time, implementation fees, licence or SaaS, sales commissions, development costs, deferred revenue and ARR.
- SaaS revenue recognition under IFRS 153 minute readSaaS revenue recognition under IFRS 15: why subscriptions are recognised evenly, annual billing, usage fees, free months, renewal discounts and hosting.
- Implementation and onboarding fees3 minute readSaaS implementation fees under IFRS 15: when implementation is distinct, set-up activities, upfront fees and material rights, and capitalising set-up costs.
- Software licence or SaaS: revenue timing under IFRS 153 minute readSoftware licence or SaaS under IFRS 15: when the customer gets a licence recognised upfront, support and updates, term licences, renewals and hybrid offerings.
- Sales commissions in SaaS3 minute readSaaS sales commissions under IFRS 15: when commissions are incremental costs of obtaining a contract, the amortisation period with renewals, and impairment.
- Capitalising software development3 minute readCapitalising software development costs under IAS 38: the six criteria in agile teams, what is expensed, amortisation, and ASU 2025-06 for US platforms.
- Deferred revenue in SaaS5 minute readDeferred revenue in SaaS under IFRS 15: contract liabilities from billing in advance, the roll-forward, remaining performance obligations and acquisitions.
- Price escalators and multi-year deals4 minute readPrice escalators in multi-year SaaS deals under IFRS 15: straight-lining fixed uplifts, cancellable contracts, seat ramps, CPI-linked increases and disclosure.
- Usage-based pricing5 minute readUsage-based pricing under IFRS 15: pay-as-you-go fees, prepaid credits and breakage, minimum commitments, tiered pricing and the variable consideration rules.
- Free trials and introductory discounts4 minute readFree trials and introductory discounts in SaaS under IFRS 15: trials before a contract, free months in committed deals, monthly plans and material rights.
- Share-based payment in tech companies5 minute readShare-based payment in tech companies under IFRS 2: RSUs, graded vesting, forfeitures, net settlement, deferred tax, payroll taxes and ASC 718 differences.
- ARR and other SaaS metrics4 minute readARR and other SaaS metrics explained: annual recurring revenue, net revenue retention, billings and RPO, how they compare with IFRS revenue, and IFRS 18.
- App store revenue: principal or agent4 minute readApp store revenue under IFRS 15: whether developers report sales gross or net of platform fees, in-app purchases, virtual items, subscriptions and taxes.
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About these guides
Each guide starts from an accounting issue technology and saas companies actually face and works through it with numbers from the industry. 13 of 13 planned guides are published; more are added with every batch.