Business Case Studies & Business Publications

Revenue Recognition (Topic 606) at Sales...

Haskins, Mark E., ...

Case

Revenue Recognition (Topic 606) at Salesforce.com, Inc.

Haskins, Mark E.; Lynch, Luann J.

C-2428 | Published September 20, 2019 | 25 pages Case

Collection: Darden School of Business

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This case uses an array of carefully selected and excerpted revenue recognition related information contained in Salesforce.com’s January 31, 2019, 10-K. Maria, the fictional protagonist, is seeking to understand those disclosures as part of her preparation for an upcoming job interview with the company. As such, she is relying on those disclosures to provide insights as to the company’s main product/service lines, the events that signal when and how much revenue the company has earned (i.e., the essence of its business model), along with the related official generally accepted accounting principles (GAAP) criteria pertinent to the valuing and timing of recorded revenues.

To understand, in general, the official revenue recognition criteria codified in the Financial Accounting Standards Board’s (FASB’s) Topic 606 To find, within an array of typical 10-K disclosures, the information one company in the software industry provides regarding Topic 606