Case 16-3: A Network Of Ideas
Case 16-3: A network of ideas
Memorandum
To: Professor John Li Department of Economics Hunter College
From: Yuen Mei Hau
Re: A network of ideas
Date: October 20, 2017
Summary: This case focal point on the gross and net revenue recognition. The gross amount billed to a buyer for Spider has earned income (as a principal) from the sale of the goods or services. Also, the net amount restrain (that is, the amount billed to the buyer less the amount paid to a supplier) because Spider has earned a commission or fee as an agent.
Should Spider record the revenue it earns from placing ads for various third-party advertisers on Web sites owned by the partners on …show more content…
Spider is singly amenable for fulfilling its contracts with the advertisers. Advertisers only undergo a settlement together with Spider. In ASC 605-45-55-7, the being has common inventory exposure-before buyer method is placed or upon purchaser report. There is no schedule jeopardy because Spider only payment the comrade then the advertisers fine Spider. Spider does not own anything before the advertiser pays for the service. The service involves Spider providing advertising space for customers. Based on the records prepare, the companion only receive payment after advertisers satisfaction Spider. In ASC 605-45-55-8, the entity has extent in establishing price. The recompense instruct according to every advertiser are beyond Spider’s average schedule price and are indicate in the agreement between the advertiser and Spider. The quotation formation disagree relying on which token of the advertising industry is choice indentation parade or key word connect-Spider will charge a fee only when an end-user clicks on the …show more content…
Spider not only concert the ad rove on its own websites, but it in augmentation subsist other Web site owners with repletion their ad walk. In ASC 605-45-55-10, the entity has discretion in supplier choice. Spider agrees to place advertiser’s ads on Web sites owned by Spider. Spider can also place these ads on Web sites owned by its network partners (the “partners”), for which it has agreements to do so. Spider offers the advertisers a listing about Web sites to pick from. In ASC 605-45-55-11, the entity is involved in the judgment of product or service specifications. Spider’s agreement together with the companions additionally specifies the space, size and site over the partner’s website that amount need to stay handy because
Memorandum
To: Professor John Li Department of Economics Hunter College
From: Yuen Mei Hau
Re: A network of ideas
Date: October 20, 2017
Summary: This case focal point on the gross and net revenue recognition. The gross amount billed to a buyer for Spider has earned income (as a principal) from the sale of the goods or services. Also, the net amount restrain (that is, the amount billed to the buyer less the amount paid to a supplier) because Spider has earned a commission or fee as an agent.
Should Spider record the revenue it earns from placing ads for various third-party advertisers on Web sites owned by the partners on …show more content…
Spider is singly amenable for fulfilling its contracts with the advertisers. Advertisers only undergo a settlement together with Spider. In ASC 605-45-55-7, the being has common inventory exposure-before buyer method is placed or upon purchaser report. There is no schedule jeopardy because Spider only payment the comrade then the advertisers fine Spider. Spider does not own anything before the advertiser pays for the service. The service involves Spider providing advertising space for customers. Based on the records prepare, the companion only receive payment after advertisers satisfaction Spider. In ASC 605-45-55-8, the entity has extent in establishing price. The recompense instruct according to every advertiser are beyond Spider’s average schedule price and are indicate in the agreement between the advertiser and Spider. The quotation formation disagree relying on which token of the advertising industry is choice indentation parade or key word connect-Spider will charge a fee only when an end-user clicks on the …show more content…
Spider not only concert the ad rove on its own websites, but it in augmentation subsist other Web site owners with repletion their ad walk. In ASC 605-45-55-10, the entity has discretion in supplier choice. Spider agrees to place advertiser’s ads on Web sites owned by Spider. Spider can also place these ads on Web sites owned by its network partners (the “partners”), for which it has agreements to do so. Spider offers the advertisers a listing about Web sites to pick from. In ASC 605-45-55-11, the entity is involved in the judgment of product or service specifications. Spider’s agreement together with the companions additionally specifies the space, size and site over the partner’s website that amount need to stay handy because