Channel Inventory & Revenue Recognition
Hardware companies selling through distributors and resellers must account for channel inventory, price protection claims, and stock rotation rights. Getting this wrong creates SEC comment letters.
Technology
Hardware & Semiconductor Companies
Standard cost variances, channel inventory accounting, and equity compensation for semiconductor and hardware companies. Nexus handles the accounting complexity of fabless and integrated device manufacturing businesses.
GAAPSECASC 718
The Hardware & Semiconductor Companies Finance Challenge
Transfer Pricing for IP Structures
Semiconductor companies with offshore IP holding structures must manage transfer pricing documentation and accounting. Tax authorities increasingly scrutinize these structures.
ASC 718 Equity Compensation
Tech companies have complex equity compensation programs — ISOs, NSOs, RSUs, PSUs, and ESPPs. ASC 718 requires fair value measurement, expense recognition, and extensive disclosure.
How Plurafi Solves It
BOM costing and standard cost variances
Channel inventory and sell-through revenue recognition
Design-to-mass-production cost tracking
Transfer pricing for IP holding structures
SEC-compliant financial statements
Equity compensation (ASC 718) accounting
Built-In Compliance
GAAP (ASC 718 — Stock Compensation)
GAAP (ASC 606 — Revenue Recognition)
SEC reporting requirements
Key Outcomes
Channel inventory
reconciled to distributor reports automatically
ASC 718
expense calculated and disclosed correctly
Standard cost
variances reported on day 1 of close
Built specifically for Hardware & Semiconductor Companies
See how Plurafi handles your industry's complexity