We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAriel Wayt
Modified over 2 years ago
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 REVENUE RECOGNITION Examples Stig Enevoldsen 18 October 2006
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue The chair handed over to the customer and cannot be returned Chair handed over, but can be returned (department store) TV handed over and paid but entire revenue can be returned on demand after 10 years Revenue recognition ?
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Bonds sold and handed over and buy back commitment (securitisation)? Aeroplane or ship sold but can be sold back after 6 years for say 55% of the price Revenue recognition ?
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Goods or software license invoiced and handed over to agent but can be given back Goods sold and handed over but price decided when the goods are sold on to the final customers Revenue recognition ?
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Alternatives: 1 Revenue and provision 2 Defer revenue until completed contract 3 Matchning/ earnings
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 REVENUE Invoice Matching Completed ? Revenue and provision Revenue when completed
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue IT-firm sells License to software Hardware Service (3 years) Conditions License from 1st Jan but CD-Rom there Hardware there Service from 1 jan ???
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Hardware Service Licens
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue IT-firm sells License to software Hardware Service (3 years) Potential upgrade Conditions License from 1st Jan but CD-Rom there Hardware there Service from 1 jan Only if made available ???
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Hardware Service Licens Upgrade???
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Sub-supplier Contract with customer signed, and sub-supplier will deliver immediately Sub-s will deliver in a month Sub-s will have to produce Revenue recognition ?
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue PHONE UP A/S (Earns up to 60% of first years fee)
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Call to customer Customer payment Fee earned per month the customer stays with client Fee earned after 9 / 15 months 36% cash received upfront 4% earned per month the customer stays Right to 36% non- refundable after 9 months 60% after 15 month
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 PHONE-UP Payment request and 36% fee paid Call and accept Customer payment? 13 weeks follow up 36% earned if paid 15 months 60% earned if paid 9 m RETURN ?
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue Call and Payment 15 completed Customer accept Performance obligation and rights to consideration
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 Revenue - measurement Telecom sells Mobile phone Connection Stay at least 6 m Conditions Mobile 1 Normal price for the calls ???
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 EFRAG Avenue des Arts 13-14 1210 Brussels Belgium WWW. EFRAG.ORG
©2006 EFRAG BRUSSELS 18. OCTOBER 2006 REVENUE RECOGNITION ADVISORY FORUM Stig Enevoldsen 18 October 2006.
Merchandise Inventory Account A merchandising business buys goods and then sells them to customers (retailers and/or wholesalers) for a profit Retailer.
The Relationship between Bond Prices and Interest Rates As interest rates change, the value of existing bonds go either up or down. If interest rates increase,
Acct Chapter 191 Revenue Recognition Revenue is recognized when (1) it is realized or realizable and (2) it is earned. TransactionType of RevenueTiming.
© Fujitsu Limited, 2010 Fixed Asset and Prepaid iProcurement Training.
Pricing Policies BMI3C. Pricing Policies Ways of setting the price of products (or services) in order to maximize revenues –Obviously you want to set.
Income Measurement and Profitablity Analysis
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3 Operating Processes: Planning and Control.
ACCOUNTING FOR SALES Unit 5. Revenues are reported when earned in accordance with the revenue recognition principle. In a merchandising company. revenues.
Prepared by: Patricia Zima, CA Mohawk College of Applied Arts and Technology Chapter 6 Appendix 6A Franchises.
ACCOUNTING FOR MERCHANDISING OPERATIONS
Reporting & Analyzing Merchandising Operations
William F. Bentz1 Revenue Recognition Revenue recognition is a crucial concept in accounting. It is the stage in the production cycle that revenue--and.
REQ Enrollment in Demand Response Programs Process Flow Engineering Firm Retail Customer Demand Response Service Provider (DRSP) Distribution Company.
Multinational Capital Budgeting 14 Chapter South-Western/Thomson Learning © 2006 Slides by Yee-Tien (Ted) Fu.
1 Arizona Sales Tax & Use Tax Chunyan Pan Tax Manager Financial Services Office.
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Merchandising Activities Chapter 6.
Contracts and Moral Hazards
Features of the foreign trade contracts
Chapter 15 Closing the Bid. Objectives Upon completion of this chapter, you will be able to: –Describe the estimate summary process –Describe items that.
© PHI Learning, All rights reserved.1 Financial Accounting: A Managerial Perspective Third Edition Prepared by R. Narayanaswamy Indian Institute.
1 Software Engineering II The Business Aspects of Software Engineering.
Of Financial Accounting, 3e CORNERSTONES. © 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part,
What it can do for you and your
Chapter 2 IAS 18 Revenue. Definition Definition Revenue: The gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary.
Copyright 2006 – Biz/ed The Theory of the Firm.
The Adjusting Process ACG 2021 Chapter 3.
Chapter 4 Supply Contracts.
1 Chapter 6: Revenue Analysis. 2 Revenue Recognition Criteria Both the criteria should be satisfied: Good and service has been delivered Cash is collected.
ENTREPRENEURSHIP (Ms. Hawkins)
Revenue Recognition Intermediate Accounting,17E Stice | Stice | Skousen © 2010 Cengage Learning PowerPoint presented by: Douglas Cloud Professor Emeritus.
0 - 0.
Revenue Recognition Principles for Introductory Financial Accounting WENDY TIETZ, PHD, CPA, CMA, KENT STATE.
Marketing Alternatives To Manage Risk Paul E. Patterson and Larry D. Makus University of Idaho Department of Agricultural Economics & Rural Sociology.
18-1 Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting.
Copyright K.Cuthbertson, D.Nitzsche. 1 Version 11/9/2001 Lecture Options Pricing.
Chapter McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Cost of Sales and Inventory 6.
CONTRACT COSTING Contract costing is that form specific order costing which applies where the work is undertaken according to customer’s requirements and.
Interest Rate Risk Management. Strategies to Manage Interest-rate Risk Rearrange balance-sheet Gap Management Duration Gap Management Off-Balance Sheet.
Chapter 4 Accounting for Merchandising Businesses.
CTC 475 Review Methods for determining whether an alternative is feasible or not Methods for determining whether an alternative is feasible or not Establishing.
COMMERCIAL FACTORING What it can do for you and your business…
The Opportunity LifeCenter offers ways for insurance professionals to create additional revenue streams that most do not consider. Insurance agents are.
Webinar: June 6, :00am – 11:30am EDT The Community Eligibility Option.
An Introduction To Real Estate Referrals The Referral Associate Presented By the Referral Center, Inc. & The Real Estate Professionals Society RealtyU,
© 2017 SlidePlayer.com Inc. All rights reserved.