alvin hospital a taxpaying entity is considering a new ambulatory surgical center as 613272

SAP AG (2007)

Notes to the Consolidated Financial Statements 2007 [extract]

3. Summary of significant accounting policies [extract]

Revenue Recognition [extract]

Revenue for arrangements that involve significant production, modification, or customization of the software and those in which the services are not available from third-party vendors and are therefore deemed essential to the software, is recognized on a time-and-material basis or using the percentage of completion method of accounting, based on direct labor costs incurred to date as a percentage of total estimated project costs required to complete the project. If we do not have a sufficient basis to measure the progress of completion or to estimate the total contract revenues and costs, revenue is recognized only to the extent of contract cost incurred for which we believe recoverability to be probable.