WA 1-8 Explain who the stakeholders are that would be interested in the financial reporting of the company and what information would be most relevant to these stakeholders. Stakeholders: - Investors o Investors would be interested in their financial reporting because they would need to see if the company is making profits, their current situation, losses that they could have incurred and why this has happened, current and future projects, and etc. This information is important to the investors
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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
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are needed for the hardware to work perfectly, it cannot be within the scope of ASC 985-605. 2.) On the basis of the response to Question 1, discuss the revenue recognition accounting literature that would be applied to each unit of accounting in the February 1, 2012, arrangement. Provide the cumulative revenue recognized and deferred revenue balance related to the
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Professor Paul Zarowin - NYU Stern School of Business Financial Reporting and Analysis - B10.2302/C10.0021 - Class Notes Revenue Recognition - Special Issues In most cases, revenue recognition is straightforward. Revenue is recognized when two conditions are met: (1) it is earned (i.e., performance is complete), and (2) cash collection is (reasonably) assured. RCJ (pg. 46) refer to these as the critical event and the measurable conditions, respectively. In this module we will discuss
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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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