TAILIEUCHUNG - Issues in Financial Accounting (21)

PART II: Corporate Accounting Concepts and . Issues Lecture 21. Revenue Recognition:. Completed Contract. Learning. Learning Objectives. Objectives 1. Apply the completed-contract method for long-term contracts. 2. Identify the proper accounting for losses on long-term contracts. 3. Describe the installment-sales method of accounting. 4. Explain the cost-recovery method of accounting2 Revenue. Revenue Recognition. Recognition Revenue Revenue Revenue. Current. Recognition at the Recognition Recognition after. Environment. Point of Sale before Delivery Delivery Guidelines for Sales with Percentage-of- Installment-sales. revenue discounts completion method. recognition Sales with right of method. return Cost-recovery. Departures from Sales with Completed- method. sale basis buybacks contract method. Deposit method. Bill and hold sales Long-term. Summary of. Principal-agent contract losses. relationships bases. Trade loading and Disclosures. channel stuffing Completion-of-. Multiple-deliverable production basis. Revenue. Revenue Recognition. Recognition Before. Before Delivery. Delivery Completed Contract Method. Companies recognize revenue and gross profit only at point of. sale—that is, when the contract is completed. Under this method, companies accumulate costs of long-term. contracts in process, but they make no interim charges or credits. to income statement accounts for revenues, costs, or gross. profit4 LO 1 Apply the completed-contract method for long-term contracts. Completed. Completed Contract. Contract Method. Method Illustration: Casper Construction Co. . 2 0 10 2 0 11 2 0 12 . Co nt r ac t pr ic e $ 6 7 5 ,0 0 0 $ 6 7 5 ,0 0 0 $ 6 7 5 ,0 0 0 . Co s t inc ur r e d c ur r e nt y e ar 15 0 ,0 0 0 2 8 7 ,4 0 0 17 0 ,10 0 . Es t im at e d c o s t t o c o m ple t e . in f ut ur e y e ar s 4 5 0 ,0 0 0 17 0 ,10 0 0 . Billing s t o c us t o m e r c ur r e nt ye ar 13 5 ,0 0 0 3 6 0 ,0 0 0 18 0 ,0 0 0 . Cas h r e c e ipt s f r o m c us t o m e r . Cur r e nt ye ar 112 ,5 0 0 2 6 2 ,5 0 0 3 0 0 ,0 0 0 . .

• Sáng kiến kinh nghiệm
• Issues in economics today
• Lecture Issues in economics today
• Macroeconomic issues
• International issues
• Price control issues
• Opportunity cost
• Demand model
• Elasticity of demand
• Firm production
• Perfect competition
• Gross domestic product
• Federal spending
• Fiscal policy
• Monetary policy
• Flaws in the CPI
• International trade
• International monetary fund
• Trade agreements
• Economic model
• Environmental problems
• Economic models of health care
• Medicaid costs
• Public insurance
• Prescription drugs
• Economics of crime
• Human capital
• Measuring poverty
• Social security
• Head start
• Affirmative action