Question 3: Paragraph 81 states that if the amount of consideration to which an entity will be entitled is variable‚ the cumulative amount of revenue the entity recognizes to date should not exceed the amount to which the entity is reasonably assured to be entitled. An entity is reasonably assured to be entitled to the amount allocated to satisfied performance obligations only if the entity has experience with similar performance obligations and that experience is predictive of the amount of consideration
Premium Revenue International Financial Reporting Standards Presentation of Mary
Revenue Recognition Writing Assignment 1) Groupon’s Revenue Recognition issues In September 2011‚ Groupon dramatically changed the way it reported revenue. Prior to this date‚ Groupon recorded revenue acting as a principal‚ not an agent. Recording revenue in this manner means that Groupon was recording a “cost of goods sold” entry with each “revenue” entry on every sale it made. These entries heavily inflated the amount of revenue Groupon was reporting. Although net income was not affected
Premium Revenue Generally Accepted Accounting Principles Income statement
INTRODUCTION The act of the National Revenue Authority came into being on 13 September 2002. The National Revenue Authority has a mandate to administer and collect all taxes‚ revenues and all penalties as stated in the NRA act. The purpose of the National Revenue Authority is to serve as a central body for the collection and assessment of national revenue. The implementation procedures and policies by the National Revenue Authority will ensure that revenues are collected efficiently by enforcing
Premium Management International trade Tax
way of revenue recognition has been debated. Under Oracle’s current set of accounting rules‚ Oracle can recognize any revenue they believe will be shipped within the next twelve months‚ not shipped. It occurred the question of the Oracle. Thus‚ some analysts question Oracle Systems about their way of revenue recognition. Identify Oracle’s assumptions 1. Oracle assumes that their way of revenue recognition is trusty and worthy. Oracle recognize the licensing and sublicensing revenues at the
Premium Generally Accepted Accounting Principles Income Revenue
develop a new robust consumer revenue stream‚ while maintaining its significant digital advertising business.” Secondary to the constraint of maintaining the ad business was the requirement to maintain social buzz and branding. To begin‚ the NYT wanted to increase future revenues for the paper and offset the inevitable decline of its print revenue. This‚ in the short run‚ was a success. As described in Question #2; this added over $81 million in previously unexploited revenue in just the first year‚ indicating
Premium Revenue Newspaper The New York Times
Global Capital Markets 2014: The Quest for Revenue Growth by Philippe Morel‚ Nick Gardiner‚ Gwenhaël Le Boulay‚ James Malick‚ Pierre Paoli‚ Sukand Ramachandran‚ Shubh Saumya‚ and Astrid Woloszczuk MAY 06‚ 2014 Overview The capital markets and investment banking (CMIB) industry continues to try to navigate its way through a transformational period that requires tough strategic choices. Declining revenues‚ an extremely challenging regulatory climate‚ clients that demand higher service levels and
Premium Revenue Financial market Generally Accepted Accounting Principles
Corporation 1. What factors might have led analysts to question Oracle Systems’ method of revenue recognition in mid-1990? Are these legitimate concerns? Analysts might have been led to question Oracle’s method of revenue recognition because of revenue recognition timing‚ quality of receivables‚ and aggressive sales practice. These were all legitimate concerns. Oracle recognized licensing and sublicensing revenues on the date of contract rather than upon delivery when certain conditions were met.
Premium Contract Generally Accepted Accounting Principles Revenue
Problem #4-13 a) In order to answer the question‚ we first need to consider what do revenue growth and net income represents. Revenue growth suggests the company’s future profitability‚ which means that revenue growth has the potential to be a predictor of future earning power. The income statement contains both revenue and expense information. Furthermore‚ in an efficient market‚ R&D and startup costs can be adjusted‚ and as long as these information are available to the public‚ the company will
Premium Generally Accepted Accounting Principles Revenue Economics
providing services‚ the revenue can be recognized after meeting all of these conditions. First‚ the risk and reward of ownership have been transferred to the buyer. Second‚ the seller has no effective control on the goods sold. Third‚ the amount of revenue can be measured reliably. Fourth‚ the economic benefit associated with the transaction will be transferred to the seller. Fifth‚ the cost incurred and the cost to be incurred can be measured reliably. Furthermore‚ the revenue can be recognized only
Premium Generally Accepted Accounting Principles Revenue Contract
PepsiCo Inc. History The origin of PepsiCo Inc. began with its namesake beverage‚ Pepsi-Cola‚ invented by a pharmacist named Caleb Bradham in 1898 in New Bern‚ North Carolina. With its main ingredients pepsin and kola nuts‚ Pepsi-Cola offered a refreshing drink that was healthy and capable of aiding in digestion brought about by the pepsin enzyme found in the soda. Well received by the public‚ Pepsi Cola was soon patented in 1902 and was readily available throughout 24 states in America by 1910
Premium Linear regression Regression analysis Revenue