DISCUSSION OF SAB 101 Q & A Definition of Revenue (FASB Concepts Statement No. 6): Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivery or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations. Separate definition for Gains Guidelines for Revenue Recognition The revenue recognition principle (FASB Concept Stmt. No. 5) provides that companies
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Summary Nick O’Brian is a recent college graduate. He began working in the accounting department at his aunt’s software company, O’Brian Software. Nick is going over the financial statements when he recognizes some questionable revenue recognition issues. Nick proceeds to address his concerns with the chief financial officer of the company, Lee Marchetti. Lee explains to Nick how revenue recognition is broken down and that a lot of information and judgment is involved. It is also pointed out that
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Michael Dobe Jr. Bernie Ebbers(left) 5340–Ethics CEO Timothy McCoy 4/6/2015 Scott Sullivan(right) CFO&CPA 1. Two General Accounting employees-Dan Renfroe and Angela Walter-made journal entries in the amount of $150 million and $771 million, respectively, without detailed support. It was noted that this was not out of the ordinary at WorldCom. In your opinion, was this a proper accounting practice? Explain. Normally at the end of each month, Worldcom
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revenues from principal transactions, which include realized and unrealized gains or losses from financial instruments and other inventory positions owned. A significant portion of the downward shift in principal transactions revenues is actually explained by unrealized losses of $US 1.6 billion in the first semester of 2008 vs. unrealized gains of $US 200 million in the first semester of 2007. Thus, accounting at fair value for some financial assets amplified Lehman's downward earnings performance
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Growing Pains at Groupon As an undergraduate music major at Northwestern University, Andrew Mason eagerly sought a version of rock music that would fuse punk with the Beatles and Cat Stevens. Little did he imagine that within ten years he would be the CEO of one of history’s fastest growing businesses. After Northwestern and faded dreams of rock stardom, Mason, a self-taught computer programmer, was hired to write code by the Chicago firm InnerWorkings. InnerWorkings was founded in 2001 by Eric
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© 2000 American Accounting Association Accounting Horizons Vol. 14 No. 2 June 2000 pp. 235-250 Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators Patricia M. Dechow and Douglas J. Skinner Patricia M. Dechow is an Associate Professor and Douglas J. Skinner is a Professor, both at the University of Michigan. SYNOPSIS: We address the fact that accounting academics often have very different perceptions of earnings management than do practitioners
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ACTG 630 – Case Assignment Due: Wednesday, December 3 Please submit one assignment per group. No more than 3 students per group. Read “Growing Pains at Groupon” by Dutta, Caplan and Marcinko (2014) and complete the questions included in the Case Requirements section (beginning on page 238). Instructions for accessing the FASB Codification database: 1. Go to http://aaahq.org/ascLogin.cfm 2. User ID: AAA51526 3. Password: x43AYtX ISSUES IN ACCOUNTING EDUCATION Vol. 29, No. 1 2014 pp. 229–245 American
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Applied Statistical Methods Larry Winner Department of Statistics University of Florida February 23, 2009 2 Contents 1 Introduction 1.1 Populations and Samples . . . . . . . . . . . 1.2 Types of Variables . . . . . . . . . . . . . . . 1.2.1 Quantitative vs Qualitative Variables 1.2.2 Dependent vs Independent Variables . 1.3 Parameters and Statistics . . . . . . . . . . . 1.4 Graphical Techniques . . . . . . . . . . . . . 1.5 Basic Probability . . . . . . . . . . . . . . . . 1.5.1 Diagnostic
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The North Face Inc. | | A Case Study | | | | | | Table of Contents CASE BRIEF 3 CASE ABSTRACT: 3 AUDITOR’S DILEMMA: 3 AUDITOR’S QUESTION: 3 Research Questions: 3 CASE CONTEXT 4 Understanding of the North Face Entity 4 Understanding of the Entity’s Environment 6 INDUSTRY CONDITIONS 6 INDUSTRY LIFE CYCLE: 8 The Apparel Commodity Chain: 9 Demand and Competition 9 Regulatory Environment: 10 Revenue Recognition 11 Other External Factors: 12 Answer
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SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 210, 229, 230, 240, 244 and 249 [RELEASE NOS. 33-8982; 34-58960; File No. S7-27-08] RIN 3235-AJ93 ROADMAP FOR THE POTENTIAL USE OF FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS BY U.S. ISSUERS AGENCY: Securities and Exchange Commission. ACTION: Proposed rule. SUMMARY: The Securities and Exchange Commission (“Commission”) is proposing a Roadmap for the potential use of financial statements
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