Case answers 1. The merger which was to be enacted in 2001 between the Alcatel‚ a telecommunication company in Paris- France and Lucent telecommunication and technology giants in the United States of America failed due to misunderstanding of the share-ability and resource control should they have collaborated in 2001 (Hartley 2010). The Lucent Company from US realized that Alcatel never intended to equally share and control the company after the merger; instead Alcatel intended to take over control
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filling with 127‚500‚000 of Wellbutrin XL tablet. d. The revenue of each Wellbutrin XL tablet Wholesaler cost = $2.83 x = $2.096 Distributor cost = $2.096= $0.4192 e. Total revenue per truck 127‚500‚000 x $0.4192 = $ 53‚448‚000 One truck can carry $10million worth of Wellbutrin XL tablet product. Q2: How should the company recognize revenue based upon the two possible FOB structures mentioned in the case? In order to recognize revenue‚ there are four conditions must be met as according to GAAP
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http://accrualperspective.wordpress.com/2012/10/10/zyngas-revenue-recognition-dilemma/ Zynga’s Revenue Recognition Dilemma Leave a reply Zynga’s Revenue Recognition Dilemma Zynga has been the focus of a highly disputed topic on bookings and revenues as of late. Unfortunately for the online gaming company‚ many accountants and financial analysts are not in Zynga’s favor on the way that the company has been recognizing revenues. To put the company in perspective‚ there are 26 million digital
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Tiffany Fuentes Business Ethics April 11‚ 2014 Stretching the Principles of Revenue Recognition In the business world‚ not everything will work perfect to our advantage‚ but one thing people in the business world should always make sure to do is to be smart when making decisions. The best way to be smart on making decisions is following their own ethics as leaders. To be successful‚ there should not exist dishonesty‚ greed‚ or arrogance because these three factors will bring any business
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Revenue-Recognition Problems in the Communications Equipment Industry 1) In late 2000‚ Lucent announced that revenues would be adjusted downwards by $679m as a result of revenue recognition problems. Yet the firm’s market capitalization plummeted by $24.7bn. Why do you think the market reacted so negatively to Lucent’s announcements of the problems? The large drop in market capitalization is probably due to several factors. Historically‚ Lucent had successfully met analysts’ projections for
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ACCT 30101 Carlos Briones Revenue Recognition Case Amanda Eng Alipasha Ziaee 1. Revenue Recognition for MultipleElement Arrangements The Case of Velocity Cellular a) According the ASC 60525255 there are two criteria that must be met in order to be considered a separate deliverable and a separate unit of accounting:
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Lucent Technologies: Global Supply Chain Management Executive Summary Lucent Technologies is a multinational telecommunication company which was spun off from AT&T in 1996. Before restructure‚ as an integrated telecommunications services and equipment company‚ AT&T had been primarily U.S.-centric market and more than half of income was generated by services in U.S. However‚ the restructure made Lucent focused on communications equipment globally. When Lucent expand into global market
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INDUSTRY TRENDS Will GestureRecognition Technology Point the Way? David Geer existing peripherals can’t already achieve‚ or users won’t see the point in spending the time and money on the technology‚” said Jackie Fenn‚ a Fellow in emerging trends and technologies for Gartner‚ a market research firm. GESTURE-RECOGNITION TECHNOLOGY In the early 1960s‚ users could move a light-emitting pen to control the Sketchpad computer-aided design system. Several subsequent commercial systems also worked
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Financial Reporting and Analysis – ACG6175 Date: 5/18/09 Revenue Recognition Problems in the Communications Equipment Industry 1 – In late 2000‚ Lucent announced that revenues would be adjusted downwards by $679 million as a result of revenue recognition problems. Yet the firms market capitalization plummeted by $24.7 billion. Why do you think the market reacted so negatively to Lucent’s announcements of the problems? There is usually a grey zone between aggressive accounting‚ which
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Revenue Recognition Fraud: Methods and Reason In today’s corporate arena‚ fraud has taken its seat among the top priorities of those who make policies and set standards. The majority of large-scale fraud is perpetrated by the improper recognition of company revenues and is‚ in practice‚ generally simple. Revenue recognition fraud can be carried out by keeping the books open past the end of the accounting period‚ recording consignment goods as sales‚ improper bill-and-hold transactions‚ failure
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