The simple answer is I believe the financial statements would be misleading if that were the case. The area you cite is expaining the general guidelines and that license revenue COULD in certain instances be recorded at a time other than at signing, but stating that generally it isn't. If there came an instance where it wasn't I would think that should be disclosed.

One thought I had is that the revenue recognition policy described herein is that of ptsc, not PDS. It may be possible that PDS has a different policy. After all, ptsc did sign a license on their own at one time, so they do have their own policy so to speak. Again, I think it would be misleading to not state that PDS has a different policy if that is the case. But that's just MO and maybe some other accountants would have a different opinion.

Sorry, been trying to post this for about an hour but keep getting interrupted (darn clients)