Here is the synopsis of our sample research paper on Revenue Recognition at Carlton; A Case Study. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper looks at a case supplied by the student where there are different sales scenarios and questions regarding whether or not the revenue should be recognized. The paper then considers how other companies have dealt with similar scenarios and the impact of international accounting standards on the case. The bibliography cites 2 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEcarlton1.rtf
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Unformatted sample text from the term paper:
revenue for some transaction has been realized by a computer company; Carlton. This can be considered in terms of the Hierarchy of Accounting Qualities; this hierarchy is outlined in FASB
2 where relevance and reliability are the primary qualities (Libby et al, 2005). The first transaction is for a sale that has not yet been made, the customer has
the computers on a trial basis and they have paid a deposit of $20,000 which they will forfeit if they do not keep the computers at the end of the
trial. The full price of $400,000 has been recognized. This may be seen as risky as there is no guarantee that the revenue will be realized and under the convention
of purchase revenue should only be realized when it is certain. However, the work has been done and the goods supplied also under the matching concept it may be argued
that this is the right time to recognize the revenues. The company appears happy with the system, and as such it may be argued these are good delivered and it
is payment that is delayed and not to recognize the revenue may distort the trading picture. The second transaction is a system that has not been sent out and
the purchase is under a bill and hold arrangement. The company have paid $175,000 against a total due of $250,000, and the full amount has been recognized, the system is
due to be sent out the first quarter of the next financial year. This may be argued that the sale is made, but this is also a payment in advance
so the company has received the revenue. Therefore, this is a transaction that has taken place and as such not to recognize a transaction for which the work has been
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