Chapter 1 A General Industry Perspective

Edward S. Wittman Wittman Associates, Inc.

1.5 Key Terms in the Software Industry

1.8 1994 Update (New)

1.9 1995 Update (New)

1.10 1996 Update (New)

1.11 1997 Update (New)

Chapter 2 The AICPA Task Force on Accounting for the Development and Sale of Computer Software

Francis J. O'Brien

2.4 Final Comments: A Perspective

2.5 Continued Work of the Task Force (New)

2.6 Discussion of the Issues (New)

2.7 Conclusion--End of 1995 (New)

Chapter 3 The Securities and Exchange Commission

Lynn E. Turner Coopers & Lybrand L.L.P.

3.8 1996 Update (New)

Appendix 3-A SEC Accounting and Auditing Enforcement Release No. 271 (New)

Appendix 3-B SEC Accounting and Auditing Enforcement Release No. 351 (New)

Appendix 3-C SEC Accounting and Auditing Enforcement Release No. 494 (New)

Appendix 3-D SEC Accounting and Auditing Enforcement Release No. 495 (New)

Appendix 3-E SEC Accounting and Auditing Enforcement Release No. 730 (New)

Appendix 3-F SEC Letter on Costs of Software for Internal Use (New)

Chapter 5 Software Revenue Recognition--Software Licenses, Postcontract Customer Support, and Service Transactions

5.2 Software Licenses

Appenddix 5-A Software Revenue Processing Document (New)

Appendix 5-B Software Delivery Certificate (New)

* Chapter 6 Contracts for Software Combined with Hardware or Services or Both

James N. Brendel Hein & Associates LLP

* 6.2 Application of the Percentage-of-Completion Method

* 6.3 Precontract Costs (New)

Chapter 7 Capitalization, Amortization, and Net Realizable Value Testing of Software Costs

H. John Dirks Price Waterthouse LLP

7.1 Capitalization

7.4 Software Acquired in a Purchase Business Combination (New)

7.5 1996 Update (New)

Appendix 7-A Questionnaire for Compiling Information to Support Capitalization of Software Development Costs (New)

Chapter 8 Financial Reporting

Michael L. Lofing Coopers & Lybrand L.L.P.

8.5 Accounting for Stock-Based Compensation (New)

8.6 Disclosure about Derivative Financial Financial Instruments and Fair Value of Financial Instruments (New)

8.7 Advertising Costs (New)

8.8 Disclosure of Certain Significant Risks and Uncertainties (New)

8.9 EITF Developments (New)

8.10 Proposed FASB Statement-Accounting for Derivative and Similar Financial Instruments and for Hedging Activities (New)

Chapter 9 Auditing Financial Statements of Software Companies

Richard P. Graff Coopers & Lybrand L.L.P.

9.1 General Considerations: Characteristics of the Industry

9.2 Auditing Capitalized Software Development Costs

9.6 1995/96 Audit Risk Alerts (New)

Appendix 9-A High-Technology Industry Developments--1996/97 AICPA Audit Risk Alert (New)

Appendix 9-B Audit Program for Audits of Software Companies (New)

Chapter 10 Accounting for Research and Development Arrangements (New)

10.1 General

10.2 Accounting Principles for Research and Development Arrangenments

10.3 Determining Whether a Liability to Repay Exists

10.4 Accounting if There Is a Liability to Repay

10.5 Accounting if There Is No Liability to Repay

10.6 Liability to Repay a Portion of Funds Provided

10.7 Special Considerations for Issuance of Securities in Connection with a Research and Development Arrangement

10.8 Financial Reporting for Research and Development Arrangement

10.9 Illustration of Accounting for a Research and Development Arrangement with a Liability to Repay

Appendix 10-A SEC Staff Accounting Bulletin No. 63

Chapter 11 Taxation of Computer Software Companies (New)

James R. Shanahan, Jr.

Mark B. Singer

Christopher J. Ohmes Price Waterhouse LLP

11.1 Introduction

11.2 Taxation of Revenue

11.3 Tax Treatemnt of Research and Development Costs

11.4 Tax Treatment of Costs to Acquire Software

11.5 Tax Planning for Foreign Operations

11.6 1996 Update (New)

11.7 Conclusion

Appendix 11-A Revenue Procedure 69-21

Chapter 12 Legal Aspects of Software (New)

David A. Weinstein

Holme Roberts

Owen LLC

12.1 General

12.2 Copyrights

12.3 Trademarks

12.4 Patents

12.5 Protection of Trade Secrets

12.6 Software Agreements

12.7 Software Liability Issues

12.8 Reverse Engineering

Appendix 12-A Illustrative Software License Agreement

Appendix 12-B Illustrative Shrink-Wrap Software License Agreement

Appendix 12-C Illustrative Software Escrow Agreement

Appendix 12-D Illustrative Software Maintenance Agreement

Appendix 12-E Illustrative Software Development Agreement

Chapter 13 Software Industry Associations (New)

Douglas C. Jerger Interleaf, Inc.

13.1 Industry Associations in General

13.2 Software Industry Associations in General

13.3 Business Software Alliance (BSA)

13.4 Information Technology Association of America (ITTA)

13.5 Software Commitee of American Electronics Association (AEA)

13.6 Software Publishers Association (SPA)

13.7 Regional Software Industry Associations

13.8 International Software Industry Associations

Appendix 13-A National Software Industry Associations

Appendix 13-B Regional Software Industry Associations

Appendix 13-C Members of World Information Technology and Services Alliance (WITSA)

Appendix C Statement of Financial Accounting Standards No. 68 (New)

Appendix D Glossary of Key Terms for the Accountant in the Software Industry (New)

Appendix E AICPA Practice Alert on Revenue Recognition Issues (New)

Supplement Index