How was Salesforce allowed to record the deferred revenue and commissions

Document Type:Case Study

Subject Area:Finance

Document 1

It also includes the services of deferred professionals which are known as revenue ratably. Salesforce. com defers these service fees where subscription contracts and professional services are and happen to be accounted for a single unit. The recognized differed revenue during the subsequent twelve months is what is recorded as the differed revenue where the portion remaining is recorded as noncurrent ((Bertnick, 326). Roughly, between 7% and 6% of the overall differed revenue from January 31 of 2010, all the way from January 31 of 2009 is related to the professional revenue which is differed. What is meant by cookie jar reserves? In salesforce. com, cookie jar reserves are accounting methods that are used by the company to evaluate its health during good business times and overstating the health during poor performance (Benioff, 2009).

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