ch18_ins NIU F11 stu - Chapter 18-1 C H A P T E R C H A P T...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 18-1 C H A P T E R C H A P T E R 18 18 REVENUE RECOGNITION REVENUE RECOGNITION Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield Chapter 18-2 1. Apply the revenue recognition principle. 2. Describe accounting issues for revenue recognition at point of sale. 3. Apply the percentage-of-completion method for long-term contracts. 4. Apply the completed-contract method for long-term contracts. 5. Identify the proper accounting for losses on long-term contracts. 6. Describe the installment-sales method of accounting. 7. Explain the cost-recovery method of accounting. Learning Objectives Learning Objectives Chapter 18-3 Current Current Environment Environment Guidelines for Guidelines for revenue revenue recognition recognition Departures from Departures from sale basis sale basis Revenue Revenue Recognition at the Recognition at the Point of Sale Point of Sale Revenue Revenue Recognition before Recognition before Delivery Delivery Revenue Revenue Recognition after Recognition after Delivery Delivery Sales with Sales with buyback buyback agreements agreements Sales when right Sales when right of return exists of return exists Trade loading Trade loading and channel and channel stuffing stuffing Installment-sales Installment-sales method method Cost-recovery Cost-recovery method method Deposit method Deposit method Summary of Summary of bases bases Concluding Concluding remarks remarks Percentage-of- Percentage-of- completion completion method method Completed- Completed- contract method contract method Long-term Long-term contract losses contract losses Disclosures Disclosures Completion-of- Completion-of- production basis production basis Revenue Recognition Revenue Recognition Chapter 18-4 One study noted restatements of revenue: Result in larger drops in market capitalization than other types of restatement. Caused eight of the top ten market value losses in a recent year. Revenue recognition has been the largest source of public company restatements over the past decade. The Current Environment The Current Environment Chapter 18-5 The revenue recognition principle provides that companies should recognize revenue Guidelines for Revenue Recognition The Current Environment The Current Environment LO 1 Apply the revenue recognition principle. LO 1 Apply the revenue recognition principle. (1) when it is ________ or __________ and (2) when it is _______ . Chapter 18-6 Sale of product from inventory Type of __________ Rendering a service Permitting use of an asset Sale of asset other than inventory Date of sale (date of delivery) Services performed and billable As time passes or assets are used Date of sale or trade- in Gain or loss on disposition Revenue from interest, rents, and royalties Revenue from fees or services Revenue from sales Description of _____ ______ of Revenue Recognition Chapter 18 Chapter 18 The Current Environment The Current Environment LO 1 Apply the revenue recognition principle....
View Full Document

This note was uploaded on 05/25/2011 for the course ACCY 331 taught by Professor Madlinger,l during the Spring '08 term at Northern Illinois University.

Page1 / 46

ch18_ins NIU F11 stu - Chapter 18-1 C H A P T E R C H A P T...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online