...ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 609–618 American Accounting Association DOI: 10.2308/iace-50029 A Series of Revenue Recognition Research Cases Using the Codification R. Mark Alford, Teresa M. DiMattia, Nancy T. Hill, and Kevin T. Stevens ABSTRACT: This series of four short cases is designed to help students develop the skills to research the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification and other authoritative literature. It also is designed to help improve students’ ability to analyze and critique the complex issues that often surround the accounting for revenue recognition. The case scenarios describe transactions in which students must decide whether, when, and how much revenue to recognize. The issues analyzed involve bill-and-hold, multiple-element arrangements, gross versus net revenue reporting, and sales incentives. The cases are also designed to improve teamwork and communication skills. The sequence of cases is intended for use in an intermediate accounting class that covers revenue recognition, or in a capstone class that emphasizes critical thinking and research skills. Keywords: revenue; recognition; codification; research. INTRODUCTION evenue recognition is one of the top causes for financial statement restatements (Whitehouse 2010). In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment...
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...Business Case Research Paper IST 7020: Analysis, Modeling and Design Archana Avvaru Wilmington University Introduction A business plan helps the thoroughly consider their methods furthermore assists in adjusting their excitement with actualities and perceive their constraints. Business plan serves to dodge potential sad mistakes like undercapitalizing, making adverse income, employing the wrong individuals, selecting the wrong area, belittling your rival and seeking after the wrong market. "A business manager, who fails to plan, plans to fail" this basic rule holds true. The bottom line is there is no magic equation for success.(Covello & Hazelgren, 1994, 8. xx) A business case should be thorough, yet straightforward. It ought to depict the venture unmistakably, give the defense to continue, and appraisal the venture's budgetary effect or at the end of the day it can be clarified as: A business caseis a contention, typically recorded, that is planned to persuade a chief to support an activity. The report clarifies how a business choice will enhance a business, item, and so on and how it will influence expenses and bend alluring speculations. ("What is business case? - Definition from WhatIs.com," 1.d.) Assessment of Business case and Business plan The business case encompasses an all-inclusive project assessment to determine its practicality as stand-alone proposal. The business plan is the blue print for the proposed new section operation. The previous is much...
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...Business Research Case Study QNT/565 April 1, 2013 Subas Nandy, Ph.D. Business Research Case Study The following business research case study is decision-making within the workplace of a new supervisor. Because of the closing of the workforce center that Frances Holden was working, she was relocated to the Northeast location where her El Paso area supervisor, Mano, resides. Frances could not relocate to the new yet until the expansion is completed. On February 22, 2013 Frances and her coworker, Jimmie, was relocated to the Northeast workforce center. The plan was for Frances to work at the center for two weeks, have her knee surgery, and by the time she return back to work she will be able to relocate to the new center with her supervisor and coworker. During her two weeks at the Northeast center, Frances noticed the change in operation and the unethical way the previous supervisor, Frank, was giving himself credit for clients he did not see. The work study staff was seeing the clients and providing them job referrals. Frances first day working, a work study gave her a piece of paper of what he did with a client such as job referrals. Frances politely inform the work study that she could not enter services into the computer if she did not see the client. Frances observed that Frank (he was the only one working at the center until more staff came onboard) did not start seeing clients until 9:00 a.m. and not after 4:00 p.m. The staff were taking anywhere between an hour to...
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...NAME: _______________________________________ CASE 8: Research In Motion: Managing Explosive Growth 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | | | | | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | 3. INDUSTRY AND COMPETITIVE ANALYSIS |Dominant Economic Characteristics |Strategic Group MAP | | | | | | | | | | | | | | ...
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...The case study research methodology has been selected to conduct the inquiry into this phenomenon. The case study approach was advanced by noted American University scholar-in-residence Robert K. Yin; he is renowned for his work in this area. Yin (2009) explains that this empirical inquiry facilitates exploration of a contemporary phenomenon in depth within its real-life context using a variety of data sources. He instructs that this research design should be considered when: (a) the focus of the study is to answer “how” and “why” questions; (b) you cannot manipulate the behavior of those involved in the study; (c) you want to cover contextual conditions because you believe they are relevant to the phenomenon under study; or (d) the boundaries...
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...Research Case Study: Vodafone's Youth Market | | INTRODUCTION This case study will explain how the highly competitive telecommunications market lead Vodafone to set up an on-going 'panel' of respondents to give them a greater understanding of the youth market. THE CLIENT Vodafone is probably the biggest success story of the telecommunications market, becoming a household name with a penetration of 29% (TNS Telecoms panel Q3 2001) of the mobile phone market. Vodafone's media and planning agency, OMD UK plays an important strategic role in terms of researching the commercial market. THE CHALLENGE Operating in such a highly competitive industry meant that Vodafone had to look at new ways of researching how it could best profit from the hugely competitive youth market. The youth market is defined as anyone aged between 16-24 years old. Currently 90% of all 16-24 year olds own a mobile phone in the UK, amounting to 6.1m people in the UK. THE SOLUTION OMD UK, along with 2CV Research, recruited a panel of volunteers who receive monthly questionnaires over a long-term period in order to build up a profile of habits, attitudes and opinions of the young Vodafone user. The panel is made up of 200 respondents, all of whom must have an email address and a mobile phone (this is 85% of the youth market), and is maintained by 2CV. Questions sent out every month cover a whole range of areas, not just telecommunications. The idea is to build a very comprehensive picture of...
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...In this case we will be talking about the company RIM (Research in Motion) and some of the Challenges they faced to protect their Intellectual Property. Research in Motion is best known as the developer of the Blackberry smartphone. Research in Motion was involved on several Patent Litigation with the different competitors. On 1999 Glenayre Technologies (formerly known as Glenayre Electonics) filed a patent infringement suit against RIM claiming that the Inter@ctive pager line used Glenayre’s power-generation from dual battery process. This litigation caused a delay on RIM’s contract renewal with the BellSouth company and also their quarterly earnings report came with lower than expected results. In order to get new customers RIM signed an agreement with Dell Computer and Dell started selling Blackberry to large corporate accounts. On 2001 RIM replied back to Glenayre filing a suit against them for infringing on RIM’s “Single Mailbox Integration” patent. Research in Motion won this patent and allowed them to collect royalties from other mobile device makers that were planning on utilizing this technology. On 2002 Research in Motion filed the first of four suits against Good Technology for misappropriation of trade secrets, this dispute continued until 2004 where they settled an agreement. Good Technology agreed to pay a sum of money and quarterly licensing fees. Another legal dispute was the patent for the keyboard design against Handspring for its Treo device but...
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...Case Study - Research in Motion (RIM) Summary "Research in Motion (RIM) is the company behind BlackBerry, the best-selling smart-phone brand in the United States. Today, the company is credited with launching the handheld smart phone craze and the obsession with 24/7/365 access to e-mail and the Intranet" (Kotler & Keller, 2012). In 1997 RIM went public and two years later they introduced the BlackBerry. After September 11, 2001 BlackBerry became known and popular due to the government using the product. Analysis RIM focused on a strategy of building the BlackBerry brand as the most reliable, secure, and efficient data device solution on the market. RIM continued to create and provide new generations of Blackberry's that featured: longer-lasting batteries, improved wireless Internet access, an organizer, calendar, and pager. "It took five years, but in 2003 RIM sold its one millionth BlackBerry. Only one year later it sold its two millionth device, and the BlackBerry's growth exploded. In 2005, PCWorld named the BlackBerry 850 the 14th greatest gadget of the past 50 years, and between 2006 and 2008, Fortune dubbed RIM the fastest-growing company in the world." (Kotler & Keller, 2012). By RIM creating BlackBerry, they changed the way communicate, worked, and lived. What the company did well and made them unique was the end to end solution; it developed and produced the hardware as well as the software and services that made BlackBerry work. "RIM successfully targeted its...
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...Grace Lau December 18, 2014 Page 2 Conclusions and Recommendation Based on our research and facts provided to us, the consulting bill of WesternGraphics and staff salaries should be expensed as either incurred or when the first time the marketing project starts (FASB ASC 720-35-25). You could capitalize the costs incurred only if the costs qualify as direct response advertising. According to FASB ASC 340-20, direct response advertising costs are intended “to elicit sales to customers who should be shown to have responded specifically to the advertising and that result in probable future benefits”. Although there might be future benefits resulting from marketing strategy, the company didn't create any tangible or intangible asset. The slogan created by WesternGraphics has been rejected and no asset has been created on the company books. In our opinion, the consulting fees and staff salary didn't create an asset either. Since the company operates in a highly competitive industry, it’s uncertain whether the company will derive future benefits from marketing strategy. The asset is unidentified and generally such costs should be expensed. Although the company created the game (an asset), the consulting fees and staff salaries incurred do not qualify as production costs to be capitalized. According to FASB 985-2025, only costs “of producing product masters incurred subsequent to establishing technological feasibility shall be capitalized. Those costs include coding and testing...
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...Global Market Research Case Study Analysis The situation discussed in the case tells of an opportunity afforded Sperry/MacLennan Architects and Planners; the Canadian company was founded in 1972 as a one-man architectural practice and years since then they have become a very respected and profitable company in the field of architecture. It has been recorded in text that Aaker, Kumar & Day (2007) stated, “Eight market niches were identified for Canadian architects in the United States, one of which was educational facilities, in particular post-secondary institutions. This niche, identified as most likely to match S/M’s capabilities, is controlled by state governments and private organizations. Mitch Brooks, a junior partner in the firm, has plans to identify and evaluate other possible markets for S/M’s services as part of his October presentation to the board. Other parts of the United States, or the affluent countries of Europe, where recreational facilities are regularly patronized and design is taken seriously, might provide a better export market, given S/M’s string of design successes at home and the international recognition afforded by the Amherst facility design award.” (Chapter 3). Fortunately for S/M, things began to take a turn in the right direction when their persistence and faith was rewarded in 1983. Sperry won the competition for the aquatics facility for the Canada Games in Saint John. Sperry had gained renowned nationwide acknowledgment for its sports facility...
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...Case Analysis #2 Research in Motion NETW583 Martin D. Francis March 20, 2015 Introduction Research In Motion (RIM) began in 1984 with two School of Engineering students from Canada, Mike Lazaridis President and Co-CEO (University of Waterloo) and Douglas Fregin Vice President of Operations (University of Windsor). These two young men had ambition and vision that translated into success. RIM became the first to market in the wireless data technology industry. From 1988 through 2006 they produced a number of Award winning products in the Wireless Data Communication Technology Industry that kept them on the cutting edge of Information Technology and Innovation. Challenges Faced by RIM RIM became an industry giant faced with producing continued innovative products in the rapidly changing environment of Wireless Data Communications in the field of Information Technology. They grasped a large share of the market with the creation and continued development of the Black Barry their most famous product and its’ technology. They had to forecast the future in order to meet market demands and reserve resources while keeping up with the competition during a time of rapidly changing technology. In 2005 the company learned a real lesson relative to filing and protecting the patients for their creations. They became victims of injustice when they were ordered to pay $612.5 million to New Technology Products (NTP) which doesn’t actually make or sell anything relative to the patients...
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...Understand the main types of market research used to make marketing decisions In this report I will be discussing the different forms of market research and how these methods have been used to make marketing decisions for first direct. Carrying on from this I will be suggesting how different methods are appropriate to enable first direct to revitalise its brand relaunch and evaluating the businesses market research. Marketing is a management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably. To satisfy consumer needs is to make sure the consumer gets what they want. You do this through market research. The first stage of market research is to plan it also called the ‘MR process; .Define the problem .Define research objectives .Choose data sources .Choose research methods .Set budgets and deadlines .Undertake research .Analysis and evaluate Choosing the research is what I am focusing on today. There are four main sources of research, qualitative, quantitative, primary and secondary. Primary research Primary research is new information obtained by an organisation first hand from using their own resources and collecting their own data to answer specific issues or questions. The method can involve observation, experimentations, surveys, focus groups, interviews, field trials and panels. Surveys are one of the most frequently used methods of market research, there are four common ways of conducting a survey, via post...
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...PT1420 Unit 6 Research Paper 1: “Advantages and Disadvantages of Using Case Structures” Advantages: Because of their many important advantages and extreme popularity, use cases have become a fundamental part of object technology and have been incorporated in one form or another into most major object-oriented development methods. 1.You can create logic flows; in which is a method used to make the reading easier for the reader. 2.Because they are written in natural language, use cases are easy to understand and provide an excellent way for communicating with customers and users. 3.Static depth, in which “if” can be set to however amount the user wants. 4.Low CPU overhead. 5.You can insert certain captions using “< >//” 6.As a user-centered technique, use cases help ensure that the correct system is developed by capturing the requirements from the user's point of view. ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Disadvantages: In the rush to jump onto the use case bandwagon, use cases have been perceived by some as either a panacea or as an end in-and-of themselves. Unfortunately, this has often led to the uncritical acceptance of use cases without any examination of their numerous limitations and ample opportunities they offer for misuse...
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...New products from market research Curriculum Topics • Market research • Types of research • Quantitative and qualitative • Product development Kellogg’s with a sales value of £68 million*. In 2003 the Crunchy Introduction Nut brand created a brand extension. This involved using the The Kellogg Company is the world’s leading producer of cereals. Crunchy Nut name to launch a new product called Crunchy Nut Its products are manufactured in 18 countries and sold in more Clusters. This variant has two varieties, Milk Chocolate Curls and than 180 countries. For more than 100 years, Kellogg’s has been a Honey and Nut. Both of them have enabled the brand to reach a leader in health and nutrition through providing consumers with a wider group of consumers. This brand extension is now worth wide variety of food products. These are designed to be part of a £21 million in annual value sales.* balanced diet and meet the different tastes of consumers. Kellogg’s focuses on sustainable growth. This involves constantly looking This case study focuses on the importance of market research for ways to meet consumer needs by growing the cereal business during the development and launch of Crunchy Nut Bites, a more and expanding its product portfolio. recent extension to the Crunchy Nut brand. The objective of this innovation was to provide a new flavour and texture for consumers, Market research is a specific area of marketing that...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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