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Vendor-specific objective evidence (VSOE), the amendments define the vendorâs âbest estimate of example, if the purpose of a modification is to get a specific accounting treatment, that modification would not be considered material.
Interestingly, for many technology companies, the new rules may accelerate the timing of revenue recognition versus todayâs GAAP guidelines. For example, vendor-specific objective evidence (VSOE) of the fair value of post-contract support (PCS) will no longer be required to unbundle a software license arrangement.