S & H green stamps A case study in Financial Accounting By Gil Rubinstein I.D 302123427 Revenue recognition is recorded when the following conditions are satisfied 1. An exchange transaction has taken place – in this case, the stamp has been given to the customer by the grocer and the grocer has paid S&H for the stamps within a month. 2. The earnings process is complete – in this case, the stamps have been redeemed for goods at an S&H warehouse (or have expired. No details
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1. Is Eye Vision’s arrangement with Holland Hospital within the scope of ASC 985-605, Software: Revenue Recognition? In this case, the main content of the Eye Vision’s arrangement with Holland Hospital include embedded software medical equipment and an initial option to purchase a two-year separately priced maintenance agreement. In this case, because “Eye Vision has never sold, nor does it offer to sell, the Clear View Laser without the embedded software because the software is necessary to perform
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purchasor. The software has never been sold without Laser for its functional necessity. In this memo, as explained below, we conclude that: 1. Eye Vision’s arrangement with Holland Hospital is not within the scope of ASC 985-605, Software: Revenue Recognition. 2. The deliverables in this arrangement are the Clear View Laser, embedded software, and maintenance plan, respectively. 3. The Clear View Laser together with embedded software and maintenance plan will be accounted for as separate units
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1a. COGS = 56,930, 66,240, and 66,385 respectively; YE inventory = 21,620, 23,130, and 27,720 resepctively. 1b. COGS = 58,150, 67,320, and 67,600 respectively; YE inventory = 20,400, 20,830, and 24,205 respectively. 1c. COGS = 57,685, 66,246, and 66,513 respectively; YE inventory = 20,865, 22,369, and 26,830 respectively. 2. Tax savings= 488 for 2000, 432 for 2001, and 486 for 2002. Changing to LIFO will defer taxes given the current expectations. 3. The effect of remaining on LIFO in
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Explaining Basic Accounting Concepts and Business Structures ACC/537 Dec, 5, 2011 Explaining Basic Accounting Concepts and Business Structures The purpose of the paper is to explain basic accounting concepts and business structures. This paper covers four topics, which include the following: 1. Identify and describe the sources of generally accepted accounting principles (GAAP). 2. Describe effective accounting information using the qualities of accounting information. 3. Describe
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Required: How should revenue be recognized for sales of both the Ship Finder devices and service? According to FASB's Codification of Accounting Standards, a company should not recognize revenue until 1.“it has performed under the terms of the arrangement” and 2. “unless it will indeed receive and retain payment in a form that has value to the company,” (accountingresearchmanager.com) This means that the company has to perform the duty that they have agreed to in their contract and will receive
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CHAPTER 18 REVENUE RECOGNITION IFRS questions are available at the end of this chapter. TRUE-FALSe—Conceptual Answer No. Description F 1. Recognition of revenue. T 2. Realization of revenue. T 3. Delayed recognition of revenue. F 4. Recognizing revenue when right of return exists. T 5. Recognizing revenue prior to product completion. F 6. Use of percentage-of-completion method. T 7. Input measure for contract progress. T 8. Reporting Construction in Process and Billings
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Revenue Recognition Analysis One of this biggest disputed problems faced by auditors is the recognition of revenue. According to the FASB, companies recognize revenue when “a performance obligation is satisfied.” In other words, companies recognize revenue when it is realized or realizable and earned. Yet, the timing of realizable and earned revenue is different among companies. Amazon.com, the largest Internet based retailer in the United States, sells a wide variety of consumer electronics
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profits through call revenue, therefore we could say the costs associated with the contract are part of revenue generating arrangement. This arrangement could be consider as an asset because revenue (Set-up and Call revenue) provides a future economic benefit, and this arrangement is controlled by Outsourcing Services, Inc. • Question 2: If the accounting policy to defer costs is appropriate, what costs, if any, would be eligible? Any cost directly relate to the revenue arrangement are considered
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Accounting Revenue Recognition ACCOUNTING PRINCIPLE: REVENUE RECOGNITION This document describes the Revenue Recognition methods that are currently employed at ASB(ASB): Revenue Recognition Methods The ASB revenue recognition policy follows the definitions and principles stated in the Nokia Accounting Standards as well as the relevant International Financial Reporting Standards (IFRS) mainly IAS 11 "Construction contracts" and IAS 18 "Revenue". ASB´s main revenue recognition methods are
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