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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Revenue recognition is a very important component of financial accounting and reporting. The accounting principles governing revenue recognition can have a big impact on corporate accounting and the way contracts are structured with customers. As a part of ongoing discussions to converge U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)‚ some proposals to change revenue recognition have been discussed. The following will discuss revenue
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PART IX - SPICE AND SALT 106. Prohibition to sell sub-standard spice (1) No person shall import‚ process‚ store‚ expose for sale or sell any spice which does not comply with the standard specified in paragraph (2). (2) (a) Spice shall be the sound leaves‚ flowers‚ buds‚ fruits‚ seeds‚ barks or rhizomes of plants that are suitable for use as condiments for imparting any flavour or aroma to food; (b) Aniseed shall be the dried‚ ripe fruit of the plant
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Revenue recognition on FASB and IASB convergence process I. CONVERGENCE OF U.S. GAAP AND IFRS Since 2002‚ Financial Accounting Standards Board (FASB) and International Accounting Standards Board’s (IASB) have been working toward “convergence” of US General Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). They have made significant progress in efforts to converge critical accounting standards such as those dealing with revenue recognition‚
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OUTSTANDING REVENUE AS WEEKS BILLING OUTSTANDING By SACHIN GHOGLE Introduction Financial management focuses in finding the value in accounts receivable by emphasizing on improving the collections process and hence accelerating the cash flow. ‘Revenue Outstanding’ is the amount due from the customer as a result of an organisation’s normal business operation‚ that is‚ it is the amount that has been billed by organisations and is due‚ but which has not been collected. The management of ‘Revenue Outstanding’
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STRATEGIES FOR IMPROVED REVENUE GENERATION IN LOCAL GOVERNMENTS 1.0 INTRODUCTION Local governments operate at the grassroots and are expected to provide services to their stakeholders. In a federal system like Nigeria‚ local governments are close to the people and hence could effectively alter socioeconomic and political conditions within their jurisdictions. Apart from providing and maintaining basic infrastructures‚ local governments can complement the economic activities of other levels of
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THE INSTITUTE OF ACCOUNTANCY ARUSHA (IAA) RESEARCH REPORT TOPIC: THE TAX REFORM AND DOMESTIC REVENUE MOBILIZATION IN TANZANIA PREPARED BY: MSECHU AISHA R ADA III: 2007-2008 SUPERVISED BY: JEREMIAH ELIAH RESEARCH REPORT SUBMITED TO THE INSTITUTE OF ACCOUNTANCY ARUSHA IN PERTIAL FULLFILLMENT OF THE AWARD OF ADVANCE DIPLOMA IN ACCOUNTANCY (ADA) Declaration ------------------------------------------------------------------------ i Acknowledgement-------
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PPL Corporation v. Commissioner of Internal Revenue Business Income Tax‚ Northwestern Oklahoma State University ShaLyn Schaefer March 7‚ 2013 I chose this court case because the decision will have effects on many businesses in the United States who own foreign companies. A holding for the Commissioner of Internal Revenue may subject taxpayers in PPL’s position to double taxation. However‚ a holding for PPL threatens to undermine the consistency and uniformity of the U
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REVENUE GENERATION IN LOCAL GOVERNMENT COUNCILS IN NIGERIA. A CASE STUDY OF OBAFEMI/OWODE LOCAL GOVERNMENT Submitted by DAIRO ISAAC KUNLE Dept. Of Economics‚ University of Ibadan RESEARCH PROPOSAL INTRODUCTION Local governments are potentially very important for Nigeria as they play a significant role in generating revenue and encouraging civil involvement‚ as well as creating a visible link between taxes and service delivery. The increasing cost of running government coupled with dwindling revenue
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Additional facts about this case: 1. CHP is believed to be close to a long-term contract to supply parts to Medit‚ a giant construction company with excellent government contracts in southern France and nearby Euro countries. 2. Mission’s price for the coupling in questions (PT40) is $1.26‚ FOB‚ Los Angeles. The target gross margin for exports is 30% FOB $1.26 (location Los Angeles) COGS $ .88 (Fixed) GTM $0.38 CIF $1.3627= $1.36 FOB (1.05) (1.03)= 1.0815 Pricing
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