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:
Premium Generally Accepted Accounting Principles Revenue International Financial Reporting Standards
own words‚ define "revenues." Explain how revenues are different from "gains." b. Describe what it means for a business to "recognize" revenues. What specific accounts and financial statements are affected by the process of revenue recognition? Describe the revenue recognition criteria outline in the FASB’s Statement of Concepts No. 5. c. Refer to the Revenue Recognition discussion in Note 1. In general‚ when does Apple recognize revenue? Explain Apple’s four revenue recognition criteria. Do they
Premium Apple Inc.
A: The primary criteria the auditor should use in determining revenue to be recognized are: (1): persuasive evidence of an arrangement exists. (2): Delivery has occurred or services have been rendered. (3): The seller’s price to the buyer is fixed or determinable. (4): Collectability is reasonably assured. The most basic principle for revenue recognition is revenue has been realized or realizable and earned. B: (1) a: Multiple deliverable. Does the software and one year internet service has
Premium Sales Marketing Customer service
The issue of revenue recognition practices is an area that has received a lot of attention from regulators. Whenever there is a report of financial restatements or negative earnings‚ regulators pay extra attention to review the financial statements in order to verify that that there are not any indications of financial fraud or that the organization overstepped their boundaries in the area of managed earnings. The reason that regulators have taken a special interest in financial accounting and potential
Premium International Financial Reporting Standards Financial Accounting Standards Board
The revenue recognition principle is a foundation of accrual accounting and one of the main principles of GAAP. The revenue recognition principle is a set of guidelines that helps accountants to identify when a revenue event has taken place and how to appropriately record cash exchanges before‚ during‚ and after the revenue event. According to the revenue recognition principal‚ revenue must (1) be realized or realizable and (2) earned‚ in order to be recognized. According to the SEC revenue is realized
Premium Generally Accepted Accounting Principles Ethics Auditing
EXECUTIVE SUMMARY Revenue Recognition and Wareham SC Systems‚ Inc. Wareham SC Systems‚ Inc. is a capital equipment and testing instrument manufacturer and supplier comprised of three divisions: the Glendale Division‚ the Advanced Technology Division and the Technical Devices Division (Anthony‚ Hawkins‚ & Merchant‚ 2011‚ p. 137). In 1999‚ Somai Desai‚ the company’s chief financial officer‚ received news that the Security Exchange Commision (SEC) issued a new set of revenue recognition and reporting
Premium Revenue Generally Accepted Accounting Principles Customer service
Pacific-Basin Finance Journal 23 (2013) 1–24 Contents lists available at SciVerse ScienceDirect Pacific-Basin Finance Journal journal homepage: www.elsevier.com/locate/pacfin The role of the audit committee and the informativeness of accounting earnings in East Asia Tracie Woidtke a‚ Yin-Hua Yeh b‚⁎ a b Department of Finance‚ Corporate Governance Center‚ University of Tennessee‚ United States Graduate Institute of Finance‚ National Chiao Tung University‚ 1001 Ta-Hsueh Rd.‚ Hsinchu
Premium Corporate governance
ESTIMATING THE RISK PREMIUM USING HISTORICAL DATA: A CASE OF THE NSE Introduction This study seeks to estimate the risk premium of a company using historical data. Analysts use historical data to estimate the risk premium of a company’s equity. This is because the historical data is readily available from the company’s financial statements and the securities exchanges for example the Nairobi Stock Exchange (NSE) in Kenya. Historical market data can be used to compute average returns and a measure
Premium Risk Financial markets Investment
Q3: Should Apple lobby the FASB to change the revenue recognition rules for smartphones? In our opinion‚ Apple should lobby FASB to change the revenue recognition rules for smartphones‚ given the following reasons:- 1. Under “non-GAAP measures”‚ Apple’s performance looked much better than that under GAAP measures. Please find below a table1 summarizing the differences of key financial data between GAAP and non-GAAP measures for the fourth quarter of 2008:- Q4 2008 GAAP ($ billions) Non-GAAP
Premium Revenue International Financial Reporting Standards Mobile phone
Speech Recognition 1. Introduction Speech is the vocalized form of human Harvery Fletcher and Homer Dudley communication. It is based upon the firmly established the importance of the syntactic combination of lexicals and signal spectrum for reliable identification names that are drawn from very large of the phonetic nature of a speech sound. (usually about 10‚000 different words) Following the convention established by vocabularies. Each spoken word is these two
Premium Speech recognition