A bit of background: We are a Software-as-a-Services (SaaS) company that recently renewed a client's contract. However, the renewal took place during their current trial period. As a result, we're currently delivering services to a client from an old contract, but have agreed to deliver new services in the upcoming weeks. Questions: How would you appropriate recognize this revenue? Would it be best to only recognize the revenue when the first invoice for the new contract has been delivered? Or is it appropriate to recognize revenue with the signed contract the date of when it was signed? NOTE: Part of me feels like I should recognize the revenue upon contract signing. However, new services haven't yet started - therefore revenue cannot be properly claimed Any help would be greatly appreciated. Thanks!
