case 2 - Lauren Hanrahan, Kyle Gring, Kristen Cooper ACC...

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Lauren Hanrahan, Kyle Gring, Kristen Cooper ACC 310-02 Codification Case 2 1. FASB ASC 605, Revenue Recognition, addresses overall considerations of reporting gross revenue as a principle versus net as an agent. The original GAAP pronouncement that addresses net and gross revenue recognition is EITF 99: Reporting Revenue Gross as a Principal versus Net as an Agent. The original pronouncement was issued in the year 2000. 2. FASB ASC 605-45-45-4 through FASB ASC 605-45-45-14 provides eight indicators that support reporting gross revenue. An entity should report gross revenue if it is any of the following: a. The entity is the primary obligor in the arrangement. b. The entity has general inventory risk – before the customer order is placed or upon customer return. c. The entity has latitude in establishing prices. d. The entity changes the product or performs part of the service. e. The entity has discretion in supplier selection. f.
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case 2 - Lauren Hanrahan, Kyle Gring, Kristen Cooper ACC...

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