Accounting Standards Update 2014-09 "Revenue from Contracts with Customers” Jade Nelson ACCT 4111-01 10/28/2014 Over the past few years‚ the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working closely together to develop a new set of revenue recognition standards in an effort to merge the standards of FASB and IASB‚ lessen the amount of industry-specific differences in the standards‚ and make the standards more principles-based
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REVENUE RECOGNITION MCDONALD ’S CORPORATION INTRODUCTION McDonald’s and Burger King have been in competition for over 50 years. Similar companies can choose different revenue recognition methods that can cause them to appear different. This report’s purpose is to explain McDonald’s revenue recognition policies and methods in comparison to Burger King’s. DISCUSSION FOR ACCOUNTING POLICIES AND METHODS McDonald’s and Burger King’s revenues mainly consist of two things‚ sales and franchise fees
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Introduction & Intent of Project The International Accounting Standards Board (IASB) and The Financial Accounting Standards Board (FASB) have undertaken a joint revenue recognition project that clarifies the principles for recognizing revenue that can be applied consistently across various transactions‚ industries‚ and capital markets. This project will apply to all contracts with customers except leases‚ financial instruments and insurance contracts. The joint project will attempt to remove
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and as an investor. The topic that I have chosen to address is the issue of revenue recognition. Revenue Recognition Analysis I started by looking at EAs annual report (Form 10-K) for the fiscal year ending March 31‚ 2007. Revenue recognition is discussed in some detail.
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Revenue Recognition Revenue is the electricity that drives business. Revenue has been the starting point on every income statement generated‚ every sales meeting conducted‚ and is on every entrepreneur’s wish list. The basic concept for revenue recognition is that revenue should not be recognized until it is realized or realizable and earned. There are also four criteria must be met in order to recognize revenue: 1) persuasive evidence of an arrangement exists: Consider the substance of the transaction
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3.6 Revenue recognition with examples when goods are sold under sale or return There are cases when payments are received prior to events that trigger revenue recognition. In that case‚ cash is debited and the unearned revenue is credited. On the other hand‚ when revenue recognition is triggered before actual payment is received‚ accounts receivable is debited while revenue is credited (“Revenue Recognition Principle‚” 2013). Goods are sold under sale or return when they are “sent by the supplier
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Revenue Recognition: Apple Inc. THE COMPANY Our analysis of Apple Inc. will incorporate the general overview of the company and how it records it revenues. We will observe how they make an honest effort to be within compliance of all accounting standards according to the Financial Accounting Standards Board for recording and disclosure of its income. Apple’s leading competitor‚ Google Inc.‚ will also be examined to see whether they are comparable to Apple and still within compliance of the Securities
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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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Revenue Recognition 1a Identify and explain when the company recognizes revenue The Consolidated Statement of Earnings on page 39 of the 2011 10K describes the 2 sources of revenue: retail sales and credit cards. Page 33 of the notes state that they recognize revenue from sales at their retail stores at the point of sale‚ net of an allowance for estimated sales returns. Page 43 describes revenue from sales to customers shipped directly from stores and online and catalog sales includes shipping
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Q1: How many truckloads of product are actually required to carry $10 million of product? Show your calculations. The Wellbutrin XL tablet include the packaging space that stated in the question was. Dimensions of a 18 wheeler trailer was 17m x 4.5m x 2.5m Solution: Firstly‚ change the unit of the 18 wheeler trailer because different unit of measurement cannot calculate the volumes so the dimension of 18 wheeler trailer has change to centimeters. a. To convert the unit of measurement 1 meter (m)
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