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Case 3 - Atletico Cicero

Case 3 - Atletico Cicero - Allie Tate Uma Mulakala Victoria...

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Allie Tate, Uma Mulakala, Victoria Fitzsimmons, Olivia Sprecher, Laila Elgandoz, Brittany Koshinski Case 1 - Atletico Cicero Week 3 1. The accounting issue presented in this case is whether revenue should be recognized separately for each piece of equipment and installation or if it should be recognized as a unit. FASB guidance 605-25-25 and 605-25-55 both provide clarity on this issue as they describe multiple element arrangements and how to account for them. 2. Each of the components of the assembly line system is dependent upon each other to work properly. Therefore, the assembly line system is a unit of accounting-the mixer segment, molding segment, and packaging segment. However, because the installation process can be performed by an outside party it can be considered as a separate unit of accounting. Using the diagram provided in FASB guidance 605-25-55-1, we can conclude that the installation process is a separate unit of accounting.
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