Revenue Recognition

Recognition is the process for formally recording or incorporating an item in the financial statements of an entity as an asset, liability, revenue, expense, or the like. Recognition consist both initial recognition of an item and the subsequent changes in or the removal of a previously recognized item. The criteria in this statement is derived from the previous concept statements 2 and statement 3. For an item to be recognized, it should meet four fundamental recognition criteria. The four fundamental criteria are definition, measurability, relevance, and reliability. All four criteria are subject to a cost benefit constraint and a materiality threshold. The expected benefits from recognizing an item should justify the perceived cost of providing and using the information. Furthermore, an item and the information about it do not need to be recognized in financial statements if the item is not large enough to be material and the aggregate of individually immaterial items is not large enough to material to those financial statements. It is noted that the fundamental criteria apply to all recognition descisions.

NOTE: As part of your two case research assignments, you need to search the online Accounting Standards Codification (ASC) for authoritative support for the positions you are taking in your solution. Your solution should contain specific references to the ASC standard numbers you are relying upon. The ASC can be located at http://aaahq.org/ascLogin.cfm and the userID and password are AAA51268 and LGU9z3k, respectively. They are case sensitive.

In an arrangement with multiple deliverables, the delivered item or items shall be considered a separate unit of accounting if both of the following criteria are met:

According to the new standards, “Users of financial statements must be able to assess the amount, timing, and uncertainty of cash flows arising from

The following research paper is about the new joint revenue recognition principles that were unveiled by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), which standardizes generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) on recognition of revenue in the United States. The new joint revenue recognition principle was created to increase the financial transparency and the comparability within the industries in the United States of America, and as well as the industries throughout the world. The companies in the United States currently use the GAAP standards and the rest of the world uses the IFRS. But each country

The purpose of this policy is to establish administrative direction, procedural requirements, and technical guidance to ensure the appropriate protection of TMC Transportation information handled by computer networks.

The introduction of the AASB 15 alters the existing accounting framework in regards to revenue recognition in contractual transactions. The new accounting standards require revenue to be recognised at the value that best represents the value that an entity would be entitled to, after it satisfying its contractual obligations. A 5-step model has been introduced to streamline the revenue reporting process.

The transportation industry has been highly utilized around the world for thousands of years. It has been used for personal and material transportation and has connected the world and improved the economy by the allowing of imports and exports, allowed for trading, transporting goods, and much more (Lambert, 2014). It is crucial in modern society not only to businesses, but to many individuals. The trucking industry has evolved from the transportation industry and is key for daily functions to occur.

Alexander’s Trucking mission is to transport goods throughout Midwestern businesses, becoming their partner in operating efficiently and reliably. Alexander’s Trucking will use management of logistics, on-time, accurate deliveries from destination to destination in the Midwest, and partnerships with distribution centers and warehousing businesses to achieve its goals. Our long-term goal is to expand to other parts of America and eventually foreign countries like China. We at least want to have 2 trucks in every state. But for us to achieve goal there are certain steps we need to take. For example, hire loyal and reliable workers, know what our clients want to achieve, setting delivery schedules that can be met, and good communication

Question 4. 4. (TCO 3) A transportation manager who purchases a pre specified level of

Complies with federal, state, and local warehousing, material handling, and shipping requirements by studying existing and new legislation;

Accrual method: under this, the position of the seller is set as the recipient for the purposes of the advance payment before the actual delivery takes pace. In such cases, the seller is liable until and unless the good or the services are delivered.

This paper provides an overview of the revenue recognition and highlights the criteria for companies on when to recognize revenue. It also explains the reason why revenue recognition can be treated differently in two circumstances within the same airline industry.

The company is communicating with their employees via email from the head offices and they printed books, pamphlet for truck drives. Company provides information for policies and procedure via documented which you can find in each and every truck.The employees who are working in offices they can asses this information in offices. Our trucks are equipped with GPS system for the driver to help them for navigation from pick up and drop off location. Our trucks have also facility of PDA that driver can directly sings in and sign off from which they do not have to come personally in office.

There may come a time in a long haul trucker's life where he wants to leave the the simplicity of being a company driver, and to enter the exciting world of being an independent contractor. While a company employed driver is assured his miles and loads, pay and benefits, an independent contractor is his own business entity, whether incorporated as a Limited Liability Company, or doing business under his own name (Kostas, 2012). The first step in him becoming an independent contractor, in this case, is procuring commercial equipment adequate to his needs. This in and of itself is a difficult step, an obstacle to financial freedom, as attaining the necessary equipment can be a daunting task. Whether he decides to locate a lender, buy from a