3min chapter

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TOPLINE HOTLINE: Should you report ARR before or after discounting?

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CHAPTER

Understanding ARR and Revenue Recognition Practices

This chapter explores the nuances of recognizing Annual Recurring Revenue (ARR), focusing on the importance of coterminous contracts and the alignment of revenue recognition with service delivery. The discussion highlights how invoicing timing should not dictate revenue recognition, advocating for a more accurate representation of recurring revenue.

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