...Accounting Standards Update (ASU) 2014-09 Financial Accounting I - ACCT 600 Accounting Standards Update (ASU) 2014-09 The International Accounting Standards Board (IASB), responsible for the International Financial Reporting Standards (IFRS), and the Financial Accounting Standards Board (FASB), responsible for the U.S. Generally Accepted Accounting Principles (GAAP), are the two most prominent accounting entities in the world. However, there are accounting requirements between the two that are at times different and often end with conflicting results for economically similar transactions. This is most apparent in the area of revenue, prompting the FASB and IASB to collaborate for more than a decade to develop the Accounting Standards Update (ASU) 2014-09 on May 28, 2014 (FASB, 2014). Overview According to the ASU 2014-09, companies will be required to recognize revenue “to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.” (ASU, 2014-09) The new revenue standard will be included in the Codification as Topic 606, Revenue from Contracts with Customers as an amendment and replacement to Topic 605. Additionally, it will also be included in the IFRS as International Accounting Standard (IAS) 15, effectively replacing IAS 11 and 18 (Rossi, 2014). Both public and nonprofit companies will apply the new revenue standard for annual reporting...
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...Revenue Recognition-Contracts with Customers “Conversion will supply “a kinder, gentler approach” and hopefully make up for its implementation pains by improving and simplifying financial reports, he says. “But there will be abuses. Human nature never changes.” ---Revenue Recognition.com Contributor ABSTRACT On May 28, 2004, the Financial Accounting Standards Board (FASB) and International Accounting Standard Board (FASB) issued converged guidance on recognizing revenue in contracts with customers. The new guidance is a major achievement in the Boards’ joint efforts to make both U.S.GAAP and IFRS improved and making them as close as possible. The new revenue recognition standard overcomes inconsistencies regardless of industry and geography, provides more useful information for users, and simplifies the preparation of financial statement. The paper begins with the background of the joint project on the revenue recognition. The paper further discuss the core principle of the revenue recognition and new five steps revenue recognition model. Additionally, highlighting the contracts with multiple element and providing the examples to illustrate application. The paper also discusses the new disclosure requirement, and implementation of the changes. BACKGROUND In January 2002, the FASB discussed the objective and scope of a potential major project on the recognition of revenue and liability in financial statement...
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...Dr. Wygal Fall 2014 Acc 310 Codification Exercise As we have discussed, the Accounting Standards Codification (ASC) is a relatively recent addition to an accounting professional’s toolkit. You will access and employ this platform as a normal part of your studies and in the profession in the days ahead. This assignment is intended to help you to become familiar with this important new platform and to enable you to become better aware of the recent “Revenue Recognition” standard that was discussed briefly earlier in the semester. As a professional on the job, your firm will pay big $$$ for a subscription to the Professional View. Rider has paid for your ability as student to use the information below to access the Codification website: http://aaahq.org/ascLogin.cfm Use the following user name and password: User ID AAA51248 Password s33UYhH This assignment is designed to provide you with a baseline familiarity with the ASC and the terminology associated with the new Revenue Recognition pronouncement. Required: 1. Access the ASC with the user name/password information above and click on the “Help” link for the site. Explore the suggested strategies that may be employed for “searching” ASC content. Describe more specifically how information in the ASC may be identified and retrieved through the use of “Codification Reference” terminology. Starting...
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...PA1 EXAMINATION BLUEPRINT 2014/2015 Effective Date: December 2014 This document is the property of: CGA-Canada 100-4200 North Fraser Way Burnaby, British Columbia Canada V5J 5K7 Phone: 604 669-3555 Fax: 604 689-5845 www.cga.org/canada Updated: January 21, 2014 CGA-Canada PA1 Examination Blueprint 2014/2015 Table of Contents About the Examination Blueprint ......................................................................................................................... 2 PA1 Examination ................................................................................................................................................... 2 PA1 Course ........................................................................................................................................................ 2 Prerequisite Courses for the PA1 Examination .................................................................................................. 3 Competency Weightings ....................................................................................................................................... 3 Structure of the Examination ................................................................................................................................ 5 Examination Competency Coverage ..................................................................................................................... 6 Scoring Model and Evaluation of Candidate...
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...ACCOUNTING REPORT PREPARED BY BENJAMIN ARNOLD STUDENT ID: 1209002 MODULE NAME: INTRODUCTION TO ACCOUNTING MODULE CODE: AC4002 CONTENTS Introduction …………………………………………………………………………………………………………………………..03 The Income Statement of King Charles Fittings ……………………………………………………………………… 03 The Statement of Financial Position of King Charles Fittings …………………………………………………..04 Analysis of financial position ………………………………………………………………………………………05 A short report of accounting ………………………………………………………………………………………………….06 Accounting concepts ……………………………………………………………………………………………………………..08 The main accounting professional bodies ………………………………………………………………………………08 Comparison and contrast ……………………………………………………………………………………………………….09 Similarities and differences of the accounting professional bodies ………………………………………..09 References ……………………………………………………………………………………………………………………………..10 INTRODUCTION This is a report of about accounting that will look at two financial statements of King Charles Fittings, income statement and the statement of the financial position, a short report and commentary of accounting bodies listing their similarities and differences . King Charles Fittings Income Statement for the year ended 31 December 2013 £ £ 000 000 Income (Sales) ...
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...Case 13-1: Refer-a-Friend Program Runway Discount is an online retailer that sells discounted high-end fashion. The company decided to create the Refer-a-Friend Program where a current customer can refer a friend to the website. Once the new customer purchases merchandise, the existing customer will receive a $25 credit towards their next purchase. The $25 credit represents the fair value of the cost Runway would pay to earn a new customer from an unrelated third party or marketing firm. Runway Discount should record the $25 Referral Credit as a marketing expense. According to 605-50-45-2 of the FASB Accounting Standards Codification, the referral credit should be considered as a cost incurred because it meets both of the following conditions: a. Runway Discount receives an identifiable benefit in exchange for the $25 credit. In addition, the $25 credit is separate from the recipient’s purchase of Runway Discount’s products in such a way that Runway Discount could have entered into an exchange transaction with a third party (marketing firm) that does not purchase its products and still receive the same benefit. b. Runway Discount can reasonably estimate the fair value of the benefit from a referred customer. Runway Discount should record the $25 referral credit when it recognizes the revenue created by the friend that was referred. Section 605-50-25-3 in the Codification states that in regards to sales incentives that will not result in a loss on the sale...
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...Case 13-1: Refer-a-Friend Program Runway Discount is an online retailer that sells discounted high-end fashion. The company decided to create the Refer-a-Friend Program where a current customer can refer a friend to the website. Once the new customer purchases merchandise, the existing customer will receive a $25 credit towards their next purchase. The $25 credit represents the fair value of the cost Runway would pay to earn a new customer from an unrelated third party or marketing firm. Runway Discount should record the $25 Referral Credit as a marketing expense. According to 605-50-45-2 of the FASB Accounting Standards Codification, the referral credit should be considered as a cost incurred because it meets both of the following conditions: a. Runway Discount receives an identifiable benefit in exchange for the $25 credit. In addition, the $25 credit is separate from the recipient’s purchase of Runway Discount’s products in such a way that Runway Discount could have entered into an exchange transaction with a third party (marketing firm) that does not purchase its products and still receive the same benefit. b. Runway Discount can reasonably estimate the fair value of the benefit from a referred customer. Runway Discount should record the $25 referral credit when it recognizes the revenue created by the friend that was referred. Section 605-50-25-3 in the Codification states that in regards to sales incentives that will not result in a loss on the sale of a...
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...2014 Michael Velazquez FIRST SOLAR, INC. 12/31/2014 ACCT 551 Course Project Notes to Financial Statements Source for the original company financial statements: http://files.shareholder.com/downloads/FSLR/63956618x0x819571/AD02242D-C0E5-4C49-AE46-A8265164AD5F/First_Solar_2014_Annual_Report_Bookmark_-_Final.pdf TABLE OF CONTENTS Consolidated Balance Sheets for the year ended December 31, 2014, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 Consolidated Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Consolidated Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 Consolidated Statements of Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 The nature of company’s operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . ....
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...ACG 6805 Accounting Theory Fall 2015 Professor: Greg Trompeter Office: 323 BA I Phone: 407.823.2150 Office hours: Tuesday before class; as announced in class; and by appointment. Required texts: Readings available as noted below. • Trueblood cases from Deloitte. Available at: http://www.deloitte.com/view/en_US/us/About/university-relations/Deloitte-Foundation/0ac1264f0b0fb110VgnVCM100000ba42f00aRCRD.htm • FASB codification—password to be handed out in class. You may log in at http://aaahq.org/ascLogin.cfm Objectives This course examines: • How accounting principles are established and monitored by standard setters. • The strengths and weaknesses of various accounting methods and how applications of such methods affect decisions of users and preparers of financial statements. • Current issues facing standard setters and the profession. Grades will be determined as follows: 1. Class participation 45 possible points 2. Financial reporting timeline 5 possible points 3. Mini-cases (Trueblood, FASB, HBS or similar) 35 possible points 4. Problem sets and discussion question write-ups 30 possible points 5. Group presentation 10 possible points 6. Research paper 20 possible points 7. Final exam 5 possible points 150 possible points NOTE: I assume that you should plan to invest—at a minimum—three...
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...Chapter 01 Environment and Theoretical Structure of Financial Accounting True / False Questions 1. | The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises. True False | 2. | Accrual accounting attempts to measure revenues and expenses that occurred during accounting periods so they equal net operating cash flow. True False | 3. | The FASB is currently the public-sector organization responsible for setting accounting standards in the United States. True False | 4. | The FASB's due process invites various interested parties to indicate their opinions about whether financial accounting standards should be changed. True False | 5. | Accounting for stock-based compensation is an area in which the FASB has received little political interference. True False | 6. | The Public Reform and Investor Protection Act of 2002 (Sarbanes-Oxley) changed the entity responsible for setting auditing standards in the United States. True False | 7. | A rules-based approach to standard setting stresses professional judgment as opposed to following a list of rules. True False | 8. | Under federal securities laws, the SEC has the authority to set accounting standards in the United States. True False | 9. | The primary responsibility for properly applying GAAP when communicating with investors and creditors through...
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...Lease Accounting Update ( Learning objective After completing this chapter, you should be familiar with: A brief overview of the FAS B's proposed comprehensive new lease accounting guidance. I. The end is near... In May 2013, the FASB issued proposed ASU, Leases (Topic 842): a revision of the 2010 proposed Accountin-g Standards Update, Leases (Topic 840). The comment period ended in September 2013. Notice that the new lease accounting guidance is moving from FASB Accounting Standards Codification (ASC) 840, Leases, to a new Topic, ASC 842, Leases, which will supersede ASC 840. The new lease accounting guidance in ASC 842 will apply to all leases except for: Leases of intangible assets; Leases to explore for or use minerals, oil, natural gas, and similar non-regenerative resources; and Leases of biological assets, including timber. The new guidance is intended to improve the quality and comparability of financial reporting by providing greater transparency about leverage, the assets an organization uses in its operations, and the risks to which it is exposed from entering into leasing transactions. Under existing accounting standards, a majority of leases are not reported on a lessee's balance sheet even though the amounts involved can be substantial. In addition, lessees and lessors are required to classify their leases as either capital leases or operating leases and to account for those leases differently. For a lessee, capital lease assets and liabilities...
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...| Assignment # 1 ITECH6210 IT Management How Organization save money through Cloud Computing How Organization save money through Cloud Computing By: Saad Abbasi Reg# 30105773 Contents Introduction………………………………………………………………………………………………………………………….2 What is Cloud Computing? 2 Definition of Cloud Computing: 2 Less initial investment……………………………………………………………………………………………… 3 Costs reduction…………………………………………………………………………………………………………………….3 Automatic Updates……………………………………………………………………………………………………3 Low labour costs: 3 Faster time to value: 3 Pay as you go model: 3-4 Easy Capital expenditures: 4 Lower real estate and energy expenditure: 4 Review of all workloads for best results: 4 References: 8 INTRODUCTION The use of internet and emerging business technologies is almost everyday part of every enterprise and organization nowadays. The effective use of mobile and wireless devices has made information available anywhere in the world at any time. Today a very large proportion of the population around the globe are accessing their mail online through webmail clients, writing collaborative documents using web browsers, uploading and sharing photos and albums using social networking websites, running applications and storing data in servers located in Internet and not in their own computers. Things have become so simple that a user can start to use a service that resides on a remote server just by entering into a webpage. Similarly, a user can use number of...
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...GBUS-180 Case Synopsis Candidate Name: Harshit Bhalla Session: Spring 2015 Subject: GBUS-180 Due: 4/30/15 Professor: D. Flynn Candidate Name: Harshit Bhalla Session: Spring 2015 Subject: GBUS-180 Due: 4/30/15 Professor: D. Flynn 1. Historical Analysis: - A. Business In: * Overview: * Apple Inc. “is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electron1ics, computer software, online services, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its online services include iCloud, iTunes Store, and App Store. Apple's consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites.” * Apple generates revenue through many mediums. Consumer electronics is by far generating most of its revenue. Of course, it’s worth mentioning that with just one of its products, the IPhone, generating 50% of its revenue. It also generates revenue through its Apple Mac Sales, IPad, and IPod, IPod accessories, ITunes and App store and of course it’s AppleCare services. We will focus mainly on the specific consumer electronics mentioned below when describing its financial, competitive, and environmental areas. * Products & Services: ...
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...Tower Two #11-02 Suntec Tower Two Singapore 038989 Singapore 038989 Telephone (65) 6339 4100 Telephone (65) 6339 4100 Facsimile (65) 6339 9755 Facsimile (65) 6339 9755 olamgroup.com olamgroup.com Transcending Boundaries Annual Report 2014 Annual Report 2014 olamgroup.com In an effort to reduce our printed material, we have produced this year’s Corporate Responsibility & Sustainability Report on CD. Olam International Limited | Annual Report 2014 Connectivity in the Landscape DC PMS8400c NCL U315188 GP1B 01.10.2014 175# MY C K 2 U 14-023 01/10/2014 21:12 Our Vision To be a differentiated, leading, global agri-business. Our Governing Objective Maximising intrinsic shareholder value over time for our continuing shareholders, in an ethical, socially responsible and environmentally sustainable manner. Olam AR 2014_IFC 250914_TH_NEW OK.indd 2 Olam A/R_Final cover Size: 662.5(W)x297(H)mm-ISO39L Front Cover This year’s cover design celebrates Olam’s 25 years of growth. Our name means ‘transcending boundaries’ and this has inspired our journey since our inception in 1989 in Nigeria. DC NCL U315188 GP1B 02.10 .2014 175# MY C K 4 U 14-023 02/10/2014 18:12 Transcending Boundaries – the First 25 Years Introduction Olam means ‘Transcending Boundaries’ which fittingly describes our journey over the first 25 years, from a start-up to a global leader, from a company to the institution...
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...new74598_ch01_001-024.indd Page 1 24/09/12 1:18 PM user-f502 /202/MH01799/new74598_disk1of1/0073374598/new74598_pagefiles FROM PATIENT TO PAYMENT: UNDERSTANDING MEDICAL INSURANCE KEY TERMS Step 1 S te St ep 10 Follow up payments and collections Preregister patients p2 Establish financial responsibility St ep 3 S te p 9 Generate patient statements Check in patients Monitor payer adjudication Review coding compliance St ep 8 S te Check out patients Review billing compliance p7 St ep 5 S tep 6 Learning Outcomes After studying this chapter, you should be able to: 1.1 Explain how healthy practice finances depend on correctly accomplishing administrative tasks in the medical office. 1.2 Compare coinsurance and copayment requirements for health Copyright © 2014 The McGraw-Hill Companies plan benefits. 1.3 Identify the key steps in the medical billing cycle. 1.4 Discuss the impact of electronic health records on clinical and billing workflow. 1.5 Evaluate the importance of professional certification and of medical liability insurance for career advancement. S te p4 Medical Billing Cycle Prepare and transmit claims 1 accounts payable (AP) accounts receivable (AR) benefits cash flow certification coding coinsurance copayment covered services deductible diagnosis documentation electronic claim (e-claim) electronic health record (EHR) ...
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