100%(9)9 out of 9 people found this document helpful
This preview shows page 50. Sign up to view the full content.
4.Under iGAAP, the standard for revenue recognition states that theI. Revenue be realized or realizable.II. Economic benefits associated with the transaction will flow to the company selling the goods.III. Costs must be capable of being reliably measured.a.I, II, and III.b.I and III only.c.II only.d.II and III only.5.iGAAP for revenue recognitionAnswers to Multiple Choice:5.dShort Answer:1.What is a major difference between iGAAP and U.S. GAAP as regards revenue recognition practices?1.The general concepts and principles used for revenue recognition are similar between U.S. GAAP and iGAAP. When they differ is in the detail. U.S. GAAP provides specific guidance related to revenue recognition in many different industries. That is not the case for iGAAP. Also, the SEC has issued broad and specific guidance for public companies in the United States related to revenue recognition. Again the IASB does not have a regulatory body that provides additional guidance.2.iGAAP prohibits the use of the completed-contract method in accounting for long-term contracts. If revenues and costs are difficult to estimate, how must companies account for long-term contracts?2. If revenues and costs are difficult to estimate, then companies recognize revenue only to the extent of the cost incurred – a zero-profit approach.18 - 50
This is the end of the preview.
to access the rest of the document.
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
Temple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
University of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.