Discuss in detail basic revenue recognition and measurement issues. Explain how transaction price is determined in...
Discuss in detail basic revenue recognition and measurement issues. Explain how transaction price is determined in recognizing revenue. Discuss allocation of the transaction price to performance obligations when recognizing revenue. What are the key concerns in accounting for long-term contracts. Compare and contrast the percentage-of-completion and completed-contract methods of revenue recognition. Discuss accounting for special issues in revenue recognition. What are the required disclosures related to revenue recognition. (No plagiarism thank you)
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Discuss in detail basic revenue recognition and measurement issues.
Revenue recognition is a concept related to how and when recognize the revenue. When a normal product is sold by a nearby 24*7, they recognize revenue as soon as the product is sold and cash received. However, there are issues when the product is not sold instantly but in parts or take a long time to produce and receive the cash. for such cases, The revenue recognition standard, ASC 606, provides a uniform framework for recognizing revenue from contracts with customers. As per this, revenue is recognized in the period when they are realized and earned. Realized means that goods have been received by the customer. Though payment can be in later periods, but there should be reasonable level of certainty for its receipt.
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Discuss in detail basic revenue recognition and measurement
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Give at least two points that a working accountant will
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Give at least two points that a working accountant will
find useful (using complete sentences).
THE BOTTOM Changes to Revenue Recoqnition Requirements By Quinn R. Martin, Matthew J. Frazier and Michael J. Devereux Revenue is considered one of the most important financial statement measures. It is used to assess a company's past financial performance, fut ure growth potential and finan- cial well-being. This makes revenue recognition one of the accounting topics most scrutinized by business owners. The Accounting Standards Codification...
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