IFO4
Loading...The annualised value of a single customer contract, computed as total contract value divided by contract duration in years. ACV is distinct from ARR in that it applies to a specific contract rather than to the aggregate of recurring commitments. The federation requires ACV to be reported on new business and on renewals separately, with the methodology including or excluding services consistently disclosed under UFMS-001:3.2. ACV trend by cohort is published in the accreditation evidence and reconciled to the sales operations source.
A standard term of enterprise software sales operations; the construction stabilised in the late twentieth century with the rise of multi-year SaaS contracts.
Federation members publish new and renewal ACV with consistent service inclusion methodology. ACV cohort trends are published as accreditation evidence under MEV-Annex:4.1. ACV mix shifts driving aggregate ARR changes are footnoted in the quarterly disclosure.
@misc{ifo4_glossary_acv,
title = {{Annual Contract Value}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{acv}}},
year = {2026},
url = {https://ifo4.org/glossary/acv},
note = {Category: Unit Economics; key: AnnualContractValue}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.