Question 4-20 ALLIDE CONSTRUCTION COMPANY REVENUE RECOGNITION FOR THE YEARS 2011, 2012 & 2013 THREE YEAR CONTRACT VALUED @ 64,000,000.00 EXPECTED COST 46,000,000.00 YEAR DEGREE OF COMPLETION REVENUE RECOGNISED EXPENSES RECOGNIZED PROFIT 2011 7,200,000.00 16% 10,017,391.30 7,200,000.00 2,817,391.30 2012 20,100,000.00 44% 27,965,217.39 20,100,000.00 7,865,217.39 2013 18,700,000.00 41% 26,017,391.30
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smartphone business, but quickly perished as its competitors took over. From a financial reporting standpoint, this industry is particularly controversial because of the profusion of its intangible assets, research and development expenditures, and revenue recognition complexity, and perhaps after Blackberry, going concern principle. The leading company in this risky industry today is Apple, Inc. By operating in the Computer and Software industry, Apple is prone to the inherent business risks related to
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of the financial reporting system depends on answers to a few fundamental questions: At what point has revenue been earned? At what point is the earnings process complete? When have expenses really been incurred? During the 1990s’ boom in the stock prices of dot-com companies, many dot-coms earned most of their revenue from selling advertising space on their websites. To boost reported revenue, some dot-coms began swapping website ad space. Company A would put an ad for its website on company B’s
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related to interest-bearing notes: the issuance, interest expense, interest payment, and on the maturity date. * Journal entries related to zero-interest-bearing notes: the issuance, interest expense, and on the maturity date. * What is the revenue principle? * How do we account for unearned revenues? (Cash collection and revenue recognition) * How do we account for gift card revenues? (Cash collection, revenue recognition and gift card expiration). * What is the matching principle
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your selection and your reasoning fully. In our opinion, Partial Revenue Recognition approach is most consistent with the actual substance of a sales transaction involving an extended warranty contract. Using partial revenue recognition, the company can recognize partial revenue at the time of sale. We can distinguish between what is earned and what is yet to be earned. At the time of sale, the company recognized a portion of the revenue that they earned on the total sales because the warranty contract
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were a huge asset for FCB that within their control. We consider all the aircrafts have a diminished value for future periods, this asset should restate to its new estimated recoverable value and the amount of the write-off becomes an expense for the year 2005. An expense represents resources consumed by the FCB earning activities. All the non-functional aircraft supposedly reduce retained earnings for FCB. If the recoverable value is
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Leases U.S. GAAP SS9 SS8 Generally Accepted Accounting Principle The International Accounting Standards Board (IASB) The International Accounting Standards (IAS) The International Financial Reporting Standards (IFRS) SS10 Recognition R33: Financial Reporting Quality R34: Financial Statement Analysis: Applications Measurement IFRS Disclosure Financial analysis 3-375 4-375 Framework Financial reporting & analysis 1. The role of financial reporting
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Comparing IFRS to GAAP Donald Cleveland University of Phoenix Kurt Meyer ACC/290 Author Note [Include any grant/funding information and a complete correspondence address.] Abstract [The abstract should be one paragraph of between 150 and 250 words. It is not indented. Section titles, such as the word Abstract above, are not considered headings so they don’t use bold heading format. Instead, use the Section Title style. This style automatically starts your section on a new page, so you don’t
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draft on revenue recognition, the basic revenue recognition principle and model have not changed from the original proposal – i.e. an entity must recognize revenue when it transfers promised goods and services to the customer and the amount recognized should be the consideration to which the entity expects to be entitled. In current practice IFRS and US GAAP standards on revenue recognition differ but under ED they would essentially converge. Entities would apply a 5-step revenue recognition model and
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Articulation Revenue-Expense Approach Since the 1930s, accounting policy has been mainly concerned with the definition, recognition, and measurement of income. Income is derived by matching costs (including arbitrary allocation such as deprieciation) to recognized revenue. Both the income statement and balance sheet are primarily governed by accounting rules of revenue recognition and cost matching, and these rules represent a revenue-expense orientation One consenquences of the revenue-expense approach
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