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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vouchers constitute deferred revenue which must be recognized when the service is used. When recognizing revenue for the Power Starterpack, Velocity can immediately recognize the sale of activation cards because they do not require extra service after sale. This early recognition of revenue increases income because the revenue is recognized in the same period it is earned. The prepaid vouchers in the Power Starterpack require a different method of revenue recognition. The vouchers may be redeemed
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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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Week One Individual Explaining Basic Accounting Concepts and Business Structures Week One Individual Generally Accepted Accounting Principles and Source Hierarchy The sources of Generally Accepted Accounting Principles are the FASB standards, Interpretations, and Staff Positions, APB Opinions, AICPA Accounting Research Bulletins and other authoritative pronouncements. The hierarchy is as such: Category A, B, C, and D and Category A is the highest hierarchy. The following
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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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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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Revenue Recognition within the IASB and FASB Revenue Recognition within the IASB and FASB Revenue is a critical number to any user of financial statements in determining an organization’s financial position and performance. Although this is the case, there are many differences between revenue recognition for U.S. GAAP (Generally Accepted Accounting Standards under the FASB) and IFRS (International Financial Reporting Standards under IASB). Along with these differences comes need for improvement
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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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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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Revenue Recognition: IFRS and FASB Convergence With the growth of international business there is a need to standardize financial statements globally. Presently there are “approximately 120 foreign private issuers currently that report to the Commission using IFRS financial statements.” By standardizing accounting practices investors will be able to make informed decisions based on comparability and accuracy of financial statements. The SEC released this statement in 2008, “We believe that
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