4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted
Words: 4152 - Pages: 17
for the third quarter. 2) Issues on the concepts of revenue recognition that have been apply in the company to show their financial results. * Whether Biovail Corporation recognize its revenue using FOB shipping point or FOB destination. Suggested Solution 1) FOB Destination shipping term * The truck accident had no impact on company’s third quarter financial results. * The truck left Manitoba on Sep 30, which was too late to reach Distributor’s North Carolina facility prior the
Words: 302 - Pages: 2
those in the plantation industry) for a limited-scope project for BBAs and such a project is also supported in the Issues Paper produced by the Asian-Oceanian Standard Setters Group (AOSSG) and the IASB's Emerging Economies Group (EEG). Users of financial statements that responded to the IASB's agenda consultation considered a project on bearer biological assets to be important/urgent. The AOSSG noted that concerns had been raised by investors (as well as preparers) about the relevance and usefulness
Words: 1782 - Pages: 8
4011 APRIL 7, 2009 CRAIG CHAPMAN Biovail Corporation: Revenue Recognition and FOB Sales Accounting Background Late on October 9, 2003, David Maris, an analyst at Banc of America Securities (BAS), was trying to interpret the shocking events of the previous few days and finish the write-up of his first report on the Canadian pharmaceutical firm, Biovail Corporation. Maris didn’t like what he saw at the company, but he never liked writing “Sell” recommendations. In any event, he wanted
Words: 3888 - Pages: 16
deliverable because it's integrated with the five-year license and distribution agreement and doesn't have a stand-alone value. According to FASB ASC 605-25, it's not a deliverable. 2. According to FASB Statement of Financial Accounting Concepts(CON) 5,Recognition and Meaurement in Financial Statements of Business Enterprises, revenue is considered “earned” if an entity has substantially accomplished what it must do to be entitled to the contractual benefits. Revenue is “realizable” when related assets
Words: 1076 - Pages: 5
obtain uniform global application of its standards? Answer: The IASB is particularly interested in harmonization and is charged with the responsibility of establishing and gaining acceptance of international financial reporting standards. Cross-border differences in accounting and reporting create analysis and comparability problems between and among companies. The need for comparable information has led to the demand of harmonization. Question#5: It is important to understand the economic system
Words: 674 - Pages: 3
Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment IFRIC 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in September 2005. © IASCF A1027 IFRIC 6 CONTENTS paragraphs IFRIC INTERPRETATION 6 LIABILITIES ARISING FROM PARTICIPATING IN A SPECIFIC
Words: 910 - Pages: 4
IFRSs with an effective date after 1 January 2011 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees. The objective of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard
Words: 1218 - Pages: 5
HCM Measurements 1. Your Most Important Issues. These are the targets of all lower-level measures. Whether it be one or a few measures, make certain that you are focused on them and that your metrics lead in a direct line to them. 2. Human Capital Value Added. How do the people in your organization optimize themselves for the good of the company and for themselves? This is the prime measure of a person's contribution to profitability and shows that you can answer the question: "What are people
Words: 1199 - Pages: 5
A. 310-40-40 A creditor that receives long-lived assets that will be sold from a debtor in full satisfaction of a receivable shall account for those assets at their fair value less cost to sell, as that term is used in paragraph 360-10-35-43. The excess of the recorded investment in the receivable satisfied over the fair value of assets received (less cost to sell, if required above) is a loss that shall be recognized. For purposes of this paragraph, losses, to the extent they are not offset against
Words: 2134 - Pages: 9
