How should an Internet auction site account for up-front and back-end fees?
The SEC staff recommended that the FASB staff issue an announcement that up-front fees should be recognized over the period of performance, normally the listing period. The SEC staff assigned back-end fees a priority level of 3, and indicated that the facts and circumstances of auction websites vary, making guidance on accounting treatment difficult. The FASB staff concluded that SAB 101 provides sufficient guidance regarding revenue recognition for up-front and back-end feesthat is, they should be recognized over the period of performanceand that there is no need for further EITF action. The EITF has retained this inactive issue on its agenda as Issue No. 00-x2, Accounting for Front-End and Back-End Fees. Issue 10: How should arrangements that include the right to use software stored on another companys hardware be accounted for? The SEC staff assigned this issue a priority level of 2 and the EITF added the issue to its technical agenda as Issue No. 00-3, Application of AICPA Statemen
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- I am thinking about bidding on an expensive item on eBay or another auction site but I am concerned about Internet fraud. How can the WeGoLookâ˘.com service help me?
- How should an Internet auction site account for up-front and back-end fees?
