4 ms·

Are you allowed to recognize revenue for features that are coming soon?

• deleted 3y ago
  [deleted]
• throwaway1507 3y ago
  In my country it could be argued it's just a deposit and thus not taxable income.
  • NotSammyHagar 3y ago
    In the case of tesla they have a big bundle of cash sitting somewhere that they can't recognize until they ship full self driving/fsd, and they are probably never going to ship that imho
    • throwaway1507 3y ago
      Could you describe what does it mean "can't recognize"? Where I live you can use deposits as you like...
      • NotSammyHagar 3y ago
        Somehow due to accounting rules in the US, companies can take payment for software before it is done, and they can't count it as revenue somehow. So it sits there waiting for the feature to be done. I've seen it at big software companies in the us and at tesla (which is kind of a software company too). Found this random person on reddit who discusses it. Who knows if it is accurate but it matches what I've read elsewhere. https://www.reddit.com/r/investing/comments/10qpasz/tesla_counts_fsd_revenue_when_the_vehicle_is/ https://www.reddit.com/r/investing/comments/10qpasz/tesla_co...
        • throwaway1507 3y ago
          Seems like the same thing, basically. So this means they can use the money but don't have to tax it yet.