Seller must not have retained any specific performance obligations such that the earning process is not complete; f.
The only favorable variances are for supervisory salaries and industrial engineering. Under ACS athe activation card, or the delivered item in Velocity multiple-element arrangements, the same activation card model that is sold to existing customers with the same additional functionalities in the Power Starterpack is also sold by Velocity and other wireless retailers on a standalone basis.
Almost all of the variances on the report are unfavorable. Accordingly, proponents of A l t e rna t ive 2 believe that a determination of whether the activation card deliverable in this arrangement represents a separate unit of accounting should be made solely in accordance with ASCwhich states, in part: How did we have an unfavorable variance for depreciation.
After determining that the activation card represents a separate customer deliverable, proponents of A l t e rna t ive 2 also believe that this deliverable, which would be provided to the customer before any future activation services or airtime rights, should be considered a separate unit of accounting in a multiple-element arrangement if the appropriate criteria in ASC are met.
Should Preston Lansing be permitted to continue his practice of managing reported earning. However, there are other areas that governments should focus on when striving to ensure and maintain revenue generation.
This warranty provides for a replacement of the mixer if the mixer fails to work properly within one year of the date of purchase.
No clear consensus or group view delineates the criteria that should be used to determine separate deliverables in a service arrangement. Those Topics include all of the following: Tab Kapp, the general manager at the Colorado Springs facility, asked to see a copy of the preliminary draft report.
The mayor argues that the real tax base has declined in the previous five years. According to company policy, variances are taken directly to the income statement as an adjustment to cost of goods sold.
We had to scrap the machine and buy a new one. An entity should allocate a portion of or a change in the transaction price entirely to one or more performance obligation if both of the following conditions are met: The case study essentially focuses on determining whether the activation card represents a separate arrangement deliverable and, if so, whether this deliverable represents a separate unit of accounting.
However, there are some slight differences noted, primarily in that the ED would allow for use of a residual method of consideration allocation, whereas this method is explicitly prohibited in ASC this provision was removed in Issue For franchisors, see Topic So if there is a lot of inventory at an inflated cost, then the COGS is being reduced on the income statement too much because of this.
A new mayor, elected on a fiscally conservative platform, orders the city manager to conduct such an analysis. Generally In looking over the past several years of quarterly earnings reports at the Home Security Division, she noticed that the first-quarter earnings were always poor, the second-quarter earnings were slightly better, the third-quarter earnings were again slightly better, and the fourth quarter always ended with a spectacular performance in which the Home Security Division managed to meet or exceed its target profit for the year.
Prating does not like putting work off to the last minute, so just before Christmas he prepared a preliminary draft of the cost control report. The appropriate recognition of revenue then shall be determined for those combined deliverables as a single unit of accounting. If there is a lot of inventory at an inflated cost, then the cost of goods sold is being reduced on the income statement too much because of this.
Consider the following scenario for use in this Application: We have to reimburse Sanchez Engineering for the costs of that additional work.
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In looking over the past several years of quarterly earnings reports at the Home Security Division, she noticed that the first-quarter earnings were always poor, the second-quarter earnings were slightly better, the third-quarter earnings were again slightly better, and the fourth quarter always ended with a spectacular performance in which the Home Security Division managed [ ].Revenue case essay