Revenue GAAP offers specific guidance regarding how companies report revenue. In many cases, the guidance depends on the type of business. For example, a software company may follow different guidelines for reporting revenue than a construction company would. IFRS offers somewhat less guidance than GAAP. Companies have a little more flexibility in reporting revenue. For example, businesses following GAAP amortize, or allocate, revenue gradually over a period of time instead of all at once when it
Words: 1003 - Pages: 5
Project In July, 2006, the Board voted to add to its agenda a project on lease accounting. The project will be conducted jointly with the US Financial Accounting Standards Board (FASB) and is expected to result in the publication of a joint discussion paper in 2008. The project will reconsider all aspects of lease accounting and is expected to fundamentally revise the way lease contracts are recognized in the financial statements of lessees and lessors. The Board directed the staff to establish
Words: 3855 - Pages: 16
therefore the treatment and timing of accounting and recognition of the $25 Referral Credit in the Company Income Statement is also imperative. According to FASB codification 605-50-45-1, a vendor (the Company) giving customer a sales incentive or other consideration may be treated as either of the alternative ways: * An adjustment of the selling prices of the vendor’s products or services and therefore characterized as a reduction of revenue when recognized in the vendor’s income statement
Words: 825 - Pages: 4
1. Summary of activities and strategies of David Jones David Jones Limited trading as David Jones and listed on the Australian Stock Exchange is a high end department store chain. The principal activity for David Jones is retailing of different brands under various categories such as fashion, cosmetics, home wares and electronics. David Jones retails its products via departmental stores and have recently transformed itself as an Omni Channel Retailer taking advantages of on-line retailing as a strategy
Words: 4466 - Pages: 18
THEORY OF ACCOUNTS ACCOUNTING CONCEPTS 1. Which of the following statements is/are true? I. Accounting is a service activity intended to fulfill a useful function in society II. Accounting involves the art of recording, classifying and summarizing transaction and events, and interpreting the results thereof. III. Accounting is an art but not a science IV. Accounting provides quantitative financial information intended to be useful in making economic decisions a. I, II, III, IV
Words: 1052 - Pages: 5
Case Analysis Intermediate Accounting A Series of Revenue Recognition Research Cases Using the Codification Case One: Consumer Cleaning Products Corporation (CCPC) Case Two: Landline Corporation Case Three: Assembly Lines Incorporated (ALI) Submitted By Chen Chongxiao Sweta Shah Xiaoyun zhang Case One Requirement 1: The accounting issue in this case is how to account for the coupons which was introduced on Sep. 1 2009 for the new detergent Fresh & Bright Marketing campaign by a detergent
Words: 3268 - Pages: 14
Leases ........................................................................... 32 Income taxes ................................................................. 35 Provisions and contingencies ......................................... 37 Revenue recognition ...................................................... 39 Share-based payments................................................... 41 Employee benefits other than share-based payments ..... 43 Earnings per share ..........................
Words: 18304 - Pages: 74
Conceptual Framework A conceptual framework establishes the concepts that underlie financial reporting. Conceptual framework includes objectives, qualitative characteristics, elements, measurement, and recognition concepts. The FASB Concepts Statements guide the board in developing accounting principles and provide understanding. These concept statements are non-authoritative and do not establish generally accepted accounting principles. Entities do not use the FASB Concept Statements in routine
Words: 3445 - Pages: 14
Intermediate Accounting A Series of Revenue Recognition Research Cases Using the Codification Case One: Consumer Cleaning Products Corporation (CCPC) Case Two: Landline Corporation Case Three: Assembly Lines Incorporated (ALI) Submitted By Chen Chongxiao Sweta Shah Xiaoyun zhang Case One
Words: 3266 - Pages: 14
Course Goals and Learning Objectives: The goal of this course is to provide students a practitioner’s perspective on financial statement analysis. The course will emphasize thinking beyond the text and will focus to how to critically examine financial statement information and management representations. The course will primarily focus on financial statements prepared in accordance with US GAAP, however differences between US GAAP and IFRS will be outlined and examined. The class will be taught using
Words: 854 - Pages: 4
