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Accounting for Digital Products

Electronic commerce (e-commerce) has been the main subject to emerge in recent years. With the use of the Internet and digital devices there has been a significant alteration in traditional business models (Luxem, 2000). E-commerce falls into two categories: (1) trade in physical goods such as computers, televisions or books with a physical substance and (2) the trade in digital products such as software, music and video products, and several other different services that lack any physical substance (Vincent, 2004). Therefore, e-commerce not only involves a digital process of selling or buying (as a trade process) of physical products, it also involves content based products with and without physical substance. The development of e-commerce has caused a change in traditional business methods. Companies operating as publishers, software developers or computer AbstRAct