text: (l) Risks and uncertainties 
  
  The Company has made a number of estimates and assumptions related to the re p o rting of assets and liabilities and the disclosure of 
  contingent assets and liabilities to pre p a re these consolidated financial statements in conformity with generally accepted accounting 
  principles. Actual results could differ from those estimates. 
  
  (m) Revenue recognition 
  
  E u ronet recognizes revenue at the point at which the service is perf o rmed. Revenues from software licensing agreement contracts are 
  recognized on a percentage of completion basis whereby a pro-rata portion of revenue and related costs are recognized as the work 
  p ro g resses. Revenues from software licensing agreement contracts re p resenting newly released products deemed to have a higher than 
  n o rmal risk of failure during installation are recognized on a completed contract basis whereby revenues and related costs are deferre d 
  until the contract is complete. 
  
  (n) Research and development costs 
  
  The Company applies SFAS 2 and 86 in re c o rding re s e a rch and development costs. Research costs aimed at the discovery of new 
  knowledge with the hope that such knowledge will be useful in developing a new product or service or a new process or technique or in 
  bringing about significant improvement to an existing product or process are expensed as incurred (refer to Note 24). Development costs 
  aimed at the translation of re s e a rch findings or other knowledge into a plan or design for a new product or process or for a significant 
  i m p rovement to an existing product or process whether intended for sale or use are capitalized on a pro d u c t - b y - p roduct basis when 
  technological feasibility is established. 