MEMORANDUM To: Dr. John J. Morris‚ Department of Accounting From: Group # 5 (Amanda Picht‚ Qinxi Fan‚ Mengnan Zhang) Date: April 10‚ 2012 Subject: Acctg 642: Case 09-1‚ Velocity Cellular Statement of Facts Velocity Cellular Services is a company that sells wireless services and products based on the Global System for Mobile Communications (GSM) standard. Under the GSM standard‚ an activation card is necessary for every subscriber. The company is promoting Power Starterpack‚ a prepaid
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Case 09-1: Velocity Cellular Page 1 D I S C U SS I O N M A T E R I A L S O b j e c t i v es o f t h e C a se This case gives students the opportunity to use accounting and auditing literature and professional judgment to research complex accounting issues effectively and efficiently. Specifically‚ students will be able to: Understand the application of the guidance in ASC 605-25‚ as amended by ASU 2009-13‚ to complex multiple-deliverable arrangements. Understand the application of the
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09-1 Velocity Cellular Case Power Starterpack is part of Velocity Cellular Services that provides both the wireless services and products (cellular phones) to its clients. At the beginning of a cell phone contract‚ a cellular phone is sold with a wireless service that will generate cash for the service provider for the length of the contract; making Velocity Cellular Service multiple deliverables. Power Starterpack compromises of a single deliverable because the only service it is providing
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12 The Right Way to Recognize Revenue Learn the components of SAB 101 and mistakes to look out for. BY THOMAS J. PHILLIPS JR.‚ MICHAEL S. LUEHLFING AND CYNTHIA M. DAILY More than half of the financial reporting frauds among “A U.S. public companies from 1987 to 1997 involved overstating revenue‚ according to a study conducted by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Auditors have always focused on possible revenue recognition overstatement
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proper financial statement presentation. This memo will break down the accounting issues and provide guidance per section. 1. Should the information pertaining to actual claims incurred as of the balance sheet date that became available after the balance sheet date be considered in determining management’s best estimate of the medical benefits payable? If so‚ how does this information impact the amount recognized or disclosed? Yes‚ the information pertaining to actual claims incurred as
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….How to recognize Click to edit Master subtitle style VERBS 9/7/13 Verbs are a necessary component of all sentences. Verbs have two important functions: Some verbs put stalled subjects into motion while other verbs help to clarify . the subjects in meaningful ways 9/7/13 Examples My grumpy old English teacher smiled at the .plate of cold meatloaf My grumpy old English teacher = stalled .subject; smiled = verb The daredevil cockroach splashed into Sara’s .soup The daredevil
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clothing‚ has six investments remaining in the department’s portfolio as of December 31. According to ASC‚ this memo analyzes whether any of its investments are other-than-temporary impaired‚ and determines the amount of the impairment. Facts Investment 1 -- Happy New Year & Co. OTT purchased 11 shares of Happy New Year & Co. stock on at $20 a share on Jan. 3‚ 20X1‚ and the price dropped to $15 in March and remained steady till Dec. 31‚ 20X1. OTT management does not believe the decline in price to be
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Family Residence Patterns Summary © 2009 by The McGraw-Hill Companies‚ all rights reserved DIAGRAMMING KINSHIP Kinship diagrams are a shorthand method of representing and giving a clear visual picture of kin relationships. Symbols are used in Diagrams (1) to limit linguistic confusion (2) it is easier to trace and understand complex relationships with the use of these visual images. © 2009 by The McGraw-Hill Companies‚ all rights reserved Symbols Used in Kinship Diagrams © 2009 by The McGraw-Hill
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Handout Cases on Revenue Recognition CASE 1 The Sea-Soft Water Company distributes its water softeners to dealers upon their request. The contract agreement with the dealers is that they may have 90 days to sell and pay for the softeners. Until the 90-day period is over‚ any softeners may be returned at the dealer’s expense and with no further obligations on the dealer’s part. If the water softeners are damaged while in the hands of a dealer‚ Sea-Soft agrees to accept the return of the
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goal? Does it make sense to you? (p. 24) Chapter Four: In this chapter and the next‚ the boys steal food because they are starving. We usually consider this “acceptable” theft‚ but the boys stole from other people who didn’t have much food either. How do you judge what they did? Chapter Five: When the rebels overtake Beah and his brother and friends‚ they submit them to two selection processes. Why? What were the rebels selecting for? What did they see in Beah and his brother‚ Junior. Chapter Six:
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