I-03.02 Although the basic principles for revenue recognition are straightforward, complex business transactions often give rise to difficulties in reaching an appropriate accounting conclusion. More than half (and perhaps as high as 80%) of all accounting failures are attributable to misapplication of accounting rules relating to revenue recognition. The USA Securities and Exchange Commission has issued a Staff Accounting Bulletin (SAB No. 104) that gives additional guidance on revenue recognition. You can access this SAB from the SEC website (http://www.sec.gov/). Divide your class into ten teams. Each team should select one of the issues below (the page numbers refer to SAB No. 104). Read pages 9, 10, and 11 of the SAB. Afterwards, study the issue for your team found at the indicated page number. Develop a thorough understanding of your issue and prepare a "role-playing" presentation. In other words, your team is do an in-class presentation, as though it is an actual situation encountered by "your" company. Clearly explain the
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.