...History of 60th ADA 60th ADA Regiment started out as the 60th Artillery regiment under the Coast Artillery Corps. This unit was brought up on December 23, 1917. This unit was comprised of Active, and National Guard Soldiers. They were active from world war one through the Cold War period to the Present. Their Coat of Arms consists of a longhorn cattle skull, a Spotlight, a Star, and a wall. 60th ADA’s motto states “We Rule The Heavens” or Coelis Imperamus. 60th ADA Regiment was set to fight with the American Expeditionary Forces on the Western Front in World War; This conflict was called the Battle of Saint-Mihiel. They also participated in the Meuse-Argonne Offensive. After World War 1, 60th ADA became part of USAFFE’s Harbor Defenses of Manila and Subic Bays. They were tasked to provide air defense over Manila Bay and the southern section of the Bataan Peninsula. At this time they were fitted with 3-inch guns, which have a vertical range of 8,200 meters. 60th also had 37mm Guns and .50 caliber machine guns. One battery stationed in Fort Wint fell under attack and surrendered to the Japanese the december 5th following Pearl Harbor. August 1st, 1946 60th Coastal Artillery Regiment was redesignated as 60th Antiaircraft Artillery Automatic Weapons Battalion. They were stationed at Fort Bliss, Texas. The Star on the Unit Crest is there partly due to the time when 60th Antiaircraft Artillery Automatic Weapons Battalion was stationed in Texas. It Symbolized The Lone...
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...Raytheon (RTN) And Textron (TXT) Raytheon (RTN) Mission statement: “Aspiring to be the most admired defense and aerospace systems supplier through world-class people and technology”. (Raytheon.com) Background and History Raytheon was founded in Cambridge, Massachusetts in 1922, as the American Appliance Company, by Laurence K. Marshall, Vannevar Bush, and Charles G. Smith. Marshall and Bush were engineering students, while Smith was an inventor and scientist, but they were all entrepreneurs. After failures to market an idea for a new refrigerator the trio began to focus on electronics. (Raytheon, Wikipedia.com) An idea that Smith and Bush had worked on years earlier, “a new kind of gaseous tube that would allow radios for the first time to be plugged into a wall socket and operate on electricity rather than batteries”, would be their new direction. (Raytheon Company, fundinginguniverse.com) After acquiring a patent for the idea and because an Indian company already had rights to the name American Appliance Company, Raytheon Manufacturing Company was born. (Raytheon Company, fundinginguniverse.com) The consumer demand for electronics was booming and the new radio-receiver power supply (gaseous rectifier), which immediately allow radios to be in every household for pennies of what it cost to continuously replace batteries. (History, Raytheon.com) As the competition for radio-receiving tubes began to intensify Raytheon, mainly Laurence K, Marshall, saw the need to diversify...
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...Assignment 1: Organizational Analysis Keira White Professor Kim Williams BUS310 Human Resource Management May 3, 2015 When choosing a company for this assignment I wanted to choose a company that had local ties to where I live but also was a fairly large company so that I could gather the appropriate information. The company I chose is Raytheon. Raytheon is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. Raytheon’s core manufacturing concentrations are in weapons and military and commercial electronics. Raytheon was established back in 1922, reestablished in 1928 but did not take on its current name until 1959. With a history of innovation spanning 90 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. They are not only the world’s largest producer of guided missiles, but they are also the fourth largest defense contractor in the United States by revenue. What stands out the most to me when I think of Raytheon is the Patriot Missile from the Persian Gulf War in the early 1990s. Raytheon’s vision is to be the most admired defense and aerospace systems company through their world-class people, innovation and technology. Another thing about Raytheon that really sticks out in my mind is that...
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...DISCUSSION OF SAB 101 Q & A Definition of Revenue (FASB Concepts Statement No. 6): Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivery or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations. Separate definition for Gains Guidelines for Revenue Recognition The revenue recognition principle (FASB Concept Stmt. No. 5) provides that companies should recognize revenue 1) when it is realized or realizable and 2) when it is earned. Revenues are realized when goods and services are exchanged for cash or claims to cash (receivables). Revenues are realizable when assets received in exchange are readily convertible to known amounts of cash or claims to cash. Revenues are earned when the entity has substantially accomplished what it must do to be entitled to the benefits represented by the revenues, that is, when the earnings process is complete or virtually complete. Revenue Recognition Issues Usually revenue is recognized at the point of sale because most of the uncertainties related to the earning process are removed and the exchange price is known. But, the earning process itself is not defined precisely anywhere in the authoritative literature. More importantly, an entity's earnings process(es) is (are) determined by its business model(s) and the number of business models can grow...
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...I. Succinct The case present a company named Lighthouse that it business specializes as a provider of locating services for the shipping industry. The services comprise of a one-way messaging service that routes messages from the ships at sea to the shipping company’s offices. The messages provide the shipping company detailed information regarding to ship location, speed and current local weather. The way the system works for gathering the ships data is, by installing a device as a dedicated hardware unit in the ships that serves as tracing device in which Lighthouse rendered the services, Lighthouse will connect the device to its service. Before the Ship Finder service can put in place the company required to customers sign two contracts, one for the sale of the devices and the other governing the provision of the service. The service contracts generally have duration twelve months and are billed monthly, customer may terminate the services at any time but the amounts paid for the devices are nonrefundable. The Lighthouse devices are made to be used exclusively with the Lighthouse services, the standard pricing for the Ship Finder Device are $10,000 per unit (MSRP) and for the Ship Finder Service are $300 a fixed monthly payments per unit. Payments for the devices are due upon completion of the installation and final acceptance by the customer. The services are priced at standard rates although discounts are offered; depending on the number of devices sold...
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...selling price, which replaces the old requirement to establish objective evidence of fair value. EITF 08-1 provides principles and application guidance on whether multiple deliverables exist, how the arrangement should be separated, and the consideration allocated. It also requires an entity to allocate revenue in an arrangement using estimated selling prices of deliverables if a vendor does not have vendor-specific objective evidence or third-party evidence of selling price. The guidance eliminates the use of the residual method, requires entities to allocate revenue using the relative-selling-price method and significantly expands the disclosure requirements for multiple-deliverable revenue arrangements. 2) GAAP SAB 101:New Revenue Recognition Guidelines,; SAB 104: Revenue Recognition. Under US GAAP, prepaid calling card revenue is deferred and revenue recognition occurs only once...
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...theme Revenue Recognition R evenue is usually the largest single item in financial statements, and the issues involving revenue recognition are among the most important and difficult ones that standardsetters and accountants face. In recent years, concerns related to the recognition of revenue in accordance with Accounting Standards have heightened significantly. Quite often, companies end up tweaking the Revenue numbers, besides some other reasons. Recording revenue improperly is also a commonly used ‘earnings management technique’. The ever evolving business models and the growing online economy have only compounded the issue. Earnings Management/Issues with revenue recognition have been the subject of headlines in the United States and in the other parts of the world in the last few years. -Shrikant Sortur The author is a member of the Institute as well as AICPA, working with Lason Systems Inc, MI, USA. He can be reached at shrikant_ sortur@yahoo.com Revenue Recognition Under US GAAP It is estimated that Revenue Recognition related aspects appear in close to two hundred different pieces of accounting literature; of course these pieces of literature include many nuances, some of which are unique to particular transactions. Since no comprehensive standard on revenue recognition exists, there is a significant gap between the broad conceptual guidance in the Financial International Accounting Standards (IAS) are drafted on a ‘Principles-based’ approach....
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...could resell the deliverable on a standalone basis) There is objective and reliable evidence of the fair value of the undelivered item(s) If the arrangement includes a general right of return, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the vendor”. In this case it says that lighthouse devices are made to be exclusively with the light house services and there are no other competitors making devices that work with the Lighthouse services. Therefore even if the customer cancels the service at any time the device does not have value to the customer on a stand alone basis therefore revenue can not be recognized by the arrangement with multiple deliverables. According to SAB no, 104 to recognize revenue “Persuasive evidence of an arrangement exists, Delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable and Collectability is reasonably assured”. So the revenue for the Ship Finder Device can be recognized after the completion of the installation and after the final acceptance by the customer. The revenue for Ship Finder Service should be recognized after the service has been provided and the payment has been earned. The revenue for Ship Finder Service should be recognized 12 times a year. Because it’s earned once every month for the...
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...Introduction 1/5 Overview of Accounting Environment Chpt 1 E1-1, 6, 7, 8 1/10 Review Accounting Process Adjusting Entries and Financial Statement Preparation Chpt 2 pp. 50-83 E2-1,2,3,4,8, 11; P2-5, 7 Top Dawn Espresso Problem* 1/12 WorldCom Case WorldCom Case 1/17 Accrual vs. Cash Flows; Inferring JE’s; Statement of Cash Flows Chpt 2 pp. 83-93; Chpt 4 pp. 198-207 E2-14, 17; 1/19 Chemalite Case Chemalite Case 1/24 Income Statement Presentation Chpt 4 pp. 168-198 E4-4, 6, 10; P4-1 1/26 Balance Sheet and Disclosures Chpt 3 pp. 112-132 E3-2, 5, 13; P3-2, 9 1/31 Financial Statement Analysis; Review Chpt 3 pp. 132-138; Chpt 5 pp. 263-269 E3-17,18,20; E5-20, 21, 22 2/2 Midterm 2/7 Revenue Recognition Chpt. 5 pp. 232-258, SAB 104 E5-2, 4, 10, 11, 14 2/9 Revenue Recognition Chap 5 pp. 258-263; P5-8; E5-1, 15, 16; 2/14 Revenue Recognition Chap 5 2/16 Circuit City Case Circuit City case 2/21 Revenue Recognition (wrap-up); Receivables Chpt 7 pp. 336-352; Skip Sales Returns E7-5, 6, 8, 9, 11; P7-1, 2; 2/23 Review of Time Value of Money and Notes Receivable Chpt 6; Chpt 7 pp. 352-368 E6-1, 3, 6; E7-12, 13, P7-6 Writing Assignment 2/28 Receivables (wrap-up); Inventory Chpt 8, pp. 394-420 E8-13, 15, 19; P8-8, 9 3/1 Inventory Chpt. 8, pp- 420-424 E 8-23, P8-15, 16 3/6 Inventory Chpt 9, pp. 446-465 LCM only E9-1, 2, 13, 14 3/8 Catch up and Review 3/13 Finan...
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...Licensed to: CengageBrain User Licensed to: CengageBrain User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User Managing Supply Chains: A Logistics Approach, Ninth International Edition John J. Coyle, C. John Langley Jr., Robert A. Novack, Brian J. Gibson Vice President of Editorial, Business: Jack W. Calhoun Editor-in-Chief: Joe Sabatino Senior Acquisitions Editor: Charles McCormick, Jr. Developmental Editor: Daniel Noguera Editorial...
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...the business, the more specialized the industry, the more difficult the decision becomes for that business as to when to recognize earnings. On its mission to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors and users of financial information, the Financial Accounting Standards Board (FASB) added to its agenda in 2002 a project designed to develop a comprehensive Statement of Financial Accounting Standards that will focus on revenue recognition that will apply to all industries. Revenue recognition guidance exists throughout accounting literature, accounting and audit guides and audit risk alerts for specific industries and the SEC's SAB 104. Yet there is no one comprehensive source. FASB issued WHY IS REVENUE RECOGNITION SO IMPORTANT? In its October 2002 Report on Financial Statement Restatement, the GAO said that restatements for improper revenue recognition resulted in larger drops in market capitalization than any other type of restatement. In fact, eight out of the top 10 market value losses in 2000 related to improper revenue recognition. Of these 10, the top three lost $20 billion in market value in just three days. Some of the most common vehicles used to overstate revenue, according to the GAO report, include: * Sales contingencies were not disclosed to management; * Sales were booked before...
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...Accounting 440 Case 1 When auditors are determining when or how much revenue should be recognized, they call on a list of criteria in SABs 101 and 104 created by the SEC. The four main points that should be considered in making this decision are: 1. Persuasive evidence that an arrangement exists 2. Price must be fixed or determinable 3. Collectability must be reasonably assured 4. Delivery has occurred. The first of this criterion is in place because the business must be able to show that a buyer has promised them revenue. The second means that the buyer and seller have agreed on the price. The third means that the seller can expect to get revenue. It is also important to know that unless a reasonable estimate of the amount of allowance for doubtful accounts can be made, revenue should not be recognized until it is possible to make an estimation or the entire payment has been received. And finally, ownership of the goods has transferred to the buyer and they have accepted them. These criteria are important in making sure that revenue is not recognized too early because financial statements need to be as accurate as possible. 1. AOL Software The main issue to address for if AOL Software can recognize revenue is figuring out if AOL can use a 30%/70% split for recognizing revenue. Auditors should first find out why AOL decided to use the 30%/70% split. It should also be known if prices could be separated by software and Internet services, and what happens...
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...Case Study: Velocity Cellular Case Study: Velocity Cellular Revenue Recognition in a Multiple-Element Arrangement Velocity Cellular Services is planning the rollout of a new prepaid phone service called Power Starterpack. Using the current, relevant accounting guidance, determine and support the appropriate method for recognizing revenue for this new product. Power Starterpack Details Velocity Cellular sells the Power Starterpack for $200. The Power Starterpack consists of two elements: a new activation card and a prepaid voucher for $50 worth of airtime. The new activation card allows the subscriber’s cellular phone to function and gives the subscriber additional features not available with the old activation card. Activation cards can be purchased separately from Velocity. Identical activation cards can be purchased from other vendors. The $50 prepaid airtime voucher must be used within 360 days or the remaining value is forfeited. If there is no activity for seven consecutive months, the subscriber’s account is closed and the phone number is deactivated. No refunds are given and the subscriber has no general rights of return for the Power Starterpack. Are the Deliverables Considered Separate Units of Accounting? Velocity Cellular adopted ASU 2009-13, “Revenue Arrangements with Multiple Deliverables” in the current fiscal year. The Update amends the criteria in Subtopic 605-25 for separating revenue in multiple-deliverable arrangements. The amendments...
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...Velocity Cellular: Trueblood Case 09-1 Case Study: Velocity Cellular Case Study: Velocity Cellular Revenue Recognition in a Multiple-Element Arrangement Velocity Cellular Services is planning the rollout of a new prepaid phone service called Power Starterpack. Using the current, relevant accounting guidance, determine and support the appropriate method for recognizing revenue for this new product. Power Starterpack Details Velocity Cellular sells the Power Starterpack for $200. The Power Starterpack consists of two elements: a new activation card and a prepaid voucher for $50 worth of airtime. The new activation card allows the subscriber’s cellular phone to function and gives the subscriber additional features not available with the old activation card. Activation cards can be purchased separately from Velocity. Identical activation cards can be purchased from other vendors. The $50 prepaid airtime voucher must be used within 360 days or the remaining value is forfeited. If there is no activity for seven consecutive months, the subscriber’s account is closed and the phone number is deactivated. No refunds are given and the subscriber has no general rights of return for the Power Starterpack. Are the Deliverables Considered Separate Units of Accounting? Velocity Cellular adopted ASU 2009-13, “Revenue Arrangements with Multiple Deliverables” in the current fiscal year. The Update amends the criteria in Subtopic 605-25 for separating revenue in multiple-deliverable...
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...1) Which of the three approaches to accounting for extended warranty and service contracts is most consistent with the actual substance of a sales transaction involving equipment and an extended warranty contract? Explain your selection and your reasoning fully. In our opinion, Partial Revenue Recognition approach is most consistent with the actual substance of a sales transaction involving an extended warranty contract. Using partial revenue recognition, the company can recognize partial revenue at the time of sale. We can distinguish between what is earned and what is yet to be earned. At the time of sale, the company recognized a portion of the revenue that they earned on the total sales because the warranty contract is incomplete. It recognizes the rest portion of the sale as deferred revenue and records “over the contract period” (Bruns 3). This method let the sales revenue and liabilities account to average out, which is relatively relevance and faithful representing the financial information. * Full Revenue Recognition approach had low faithful representation. Since the revenue associated with the service of the contract has not yet been completed, which means the revenue had not been earned; therefore, it was less precise to recognize it at the sale. It will understate the liability and overstates sales revenue because this method realizesfull revenue at the point of sale and adjusts later if “actual costs under the service contract fell short” (Bruns 2). Full Revenue...
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