Revenue Recognition Essay

For a number of years, revenue recognition topped the list of issues that FASB should address. The issue should be addressed acknowledged the difficulty of the issue to financial practitioners. While I do have hesitations regarding the asset-liability versus realization approach being contemplated, I still believe there is an absolute need for a comprehensive standard to be issued in this area to address the significant inconsistencies in existing guidance and accepted practices. As I have indicated

Background. Revenue is a financial statement item. Accounting for revenue contains standards and principles for revenue recognition. Revenue recognition rules and statutory requirements significantly evolved over the years. It became more detailed for the purpose so financial statement users can understand true company performance and projections. The revenue recognition framework had significant differences under The Financial Accounting Standards Board (FASB) and International Financial Reporting

15.515: Financial Accounting Fall 2012 Problem Set 2 Question 1. Understanding Walmart’s financial statements In this homework we will ask you a series of questions related to revenue recognition based on Wal-Mart 2012’s Annual Report (posted on Stellar ~/Materials/Financial statements used / discussed in class). The goal is to become familiar with real financial statements. 1. How much net sales did Walmart generate for the fiscal period ending on January 31, 2012? $443,854M

Issues With Revenue Recognition within the Software Industry The Isoft Example Financial Controller-SoftWarehouse Ltd This report has been prepared for the Board of Directors of SoftWarehouse Ltd for elucidation about the contentious issues that have given rise to the publication of the article concerning Isoft’s issues with revenue recognition. Finally, it will also assess whether or not these issues are likely to affect SoftWarehouse Ltd. TABLE OF CONTENTS Executive Summary: 3

9-107-025 REV: AUGUST 23, 2007 PAUL HEALY Revenue-Recognition Problems in the Communications Equipment Industry On November 21, 2000, Lucent Technologies announced that it was revising its fourth-quarter results as a result of revenue-recognition problems discovered by its auditors during the year-end financial review. The revision lowered revenues by $125 million and earnings per share by 2 cents from 18 cents. In response, Lucent’s stock price fell by 16%, to $17.56. One month later, on

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

related studies of revenue recognition and ratio analysis. Case1: The Leading Change of Financial Changed Of Revenue Recognition by Business Enterprises under FASB vs. IASB By Prof. Edel Lemus Carlos Albizu University, United States Financial Change in Revenue Recognition In 2010 the Financial Accounting Standard (FASB) and the International Accounting Standard Board (IASB) began a joint project effort towards revenue recognition. The joint project effort of revenue recognition is considered to pass

Impact of Revenue Recognition Standards on Financial Reporting Name Institution Impact of Revenue Recognition Standards on Financial Reporting Introduction There are several regulatory bodies, both national and international, that controls the accounting system of companies. The United States General Accepted Accounting Principles (GAAP) is a rules-based accounting body that provides guidelines on how US firms accounting systems should operate. On the other hand, International Financial Reporting

IFRIS15 is combined with the GAAP to produce a single comprehensive framework about revenue. IFRIS15 replaces IAS11, IAS18 (Australian equivalent AASB118) IFRIC 13, IFRIC15, IFRIC18, SIC131. (Chartered Accountants, 2015) Revenue recognition is an important concept in accounting because it’s used to determine the company’s value, which affects major decisions of investors and management. As well as this, a coherent standard is important as it provides consistency, addresses particular issues and

officially released their joint revenue recognition standard to be applied under both GAAP and IFRS. The FASB and IASB which they have been in collaboration for a converged revenue recognition principle since 2008. The new revenue recognition standard represents a milestone in the convergence process, as it is the first fully integrated joint standard. The purpose of the new revenue recognition principle is to standardize across the board how companies should recognize revenue recorded in financial statements