Revenue Essay

Revenue Recognition: IFRS and FASB Convergence With the growth of international business there is a need to standardize financial statements globally. Presently there are “approximately 120 foreign private issuers currently that report to the Commission using IFRS financial statements.” By standardizing accounting practices investors will be able to make informed decisions based on comparability and accuracy of financial statements. The SEC released this statement in 2008, “We believe that

Revenue is one of the largest amount in the income statement. This number represents the efficiency of business operations, sales and company’s strategy. Since net income is a part of revenue, investors pay close attention to this element. Top-management of the company may manipulate both sales and receivables in order to produce better financial results. Revenue recognition accounting standards ensure that accurate amount of revenue is recognized in a proper period. Revenue recognition principle

company Remington Inc. took a major hit in revenue last year in 2015. The gun enthusiast website gun.com has a report on this revenue disaster. This reports’ main audience is to hunters like myself, whether it be for pleasure or for putting food on the table. The other audience for this article is the men and women who play the stock market. The article, “Remington reports $135.2 million loss for 2015,” goes directly into why there was such a major revenue loss. In 2014, Remington transferred the

Revenue diversification is a very important topic for nonprofit organizations. Nonprofits gain revenue from many sources individual contributions, corporate giving and government grants and tax breaks are a few examples of revenue points for nonprofits. According to Dennis Young, Nonprofits are dependent on several different sources for their income and several different combinations of these sources (2007). Having many points of revenue can be helpful in helping nonprofit firms stay balanced and

Income Measurement/Revenue Recognition A. IAS-18 Relationship A customer walks into her local Wal-Mart Supercenter to purchase a few necessities and Christmas gifts. Once the customer has found everything on her list, she goes to the nearest register to pay for her items. Her groceries totaled $102.50, her pet food cost $21.60, the videogame she picked out for her nephew is $80.00, and finally she purchased two Wal-Mart gift cards totaling $50.00. Even though the customer’s total sale is $279.10

a) -Revenues are inflows of assets or settlements of liabilities or both. Revenues come from activities of the entity’s central operations. -Gains are increases in net assets and from peripheral or incidental transactions of an entity. -The difference between gains and revenues depend to a great extent on the typical activities of a company. For example, when McDonald’s sells a hamburger, it records the selling price as revenue. However, when Mc Donald’s sells land, it records any excess of

1. Years Ended December 31, 2004 2003 2002 Revenue (pre-tax) $99.6 $73.4 $56.1 Cost of sales (Revenue x 40%) ($39.8) ($29.4) ($22.4) Selling expense ($23.3) ($18.5) ($17.5) General and Administrative expense ($19.9) ($13.2) ($14.2) Depreciation and Amortization ($0.9) ($0.6) ($0.7) Other Income (expense) $0.0 ($1.4) $0.2 Net profit (loss)--GAAP $15.7 $10.3 $1.5 Add back amount eligible for capitalization Under SAB 104 (40% of total costs X 85%) $33

Revenue recognition on FASB and IASB convergence process I. CONVERGENCE OF U.S. GAAP AND IFRS Since 2002, Financial Accounting Standards Board (FASB) and International Accounting Standards Board’s (IASB) have been working toward “convergence” of US General Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). They have made significant progress in efforts to converge critical accounting standards such as those dealing with revenue recognition,

Sales tax is the city’s single largest revenue source. With the state imposing a 10% sales and use tax on all taxable transaction within the state, Culver City receives 1% on these transactions. Sales tax accounted for 18.7% of General Fund revenues for the year ending 2017. Business tax is right behind it at 12.1% of the General Fund revenue. Property tax receipts ended the fiscal year in 2017 at $4.56 million. This was a 3.85% over the last year. The Transient Occupancy Tax which is a tax

Revenue Recognition: Case Study on Caltron Computers, Inc. Julie Mong April 17 , 2010 1. In general, evaluate Caltron's revenue recognition policy and the quality of Caltron's earnings. Caltron Computers, Inc., a computer hardware company, is publicly held with market capitalization amounting to over $450 million. Carlton’s system designs enable their mini-computer systems to measure up to the power of mainframes with small cost outlays. The accounting practices