...ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 609–618 American Accounting Association DOI: 10.2308/iace-50029 A Series of Revenue Recognition Research Cases Using the Codification R. Mark Alford, Teresa M. DiMattia, Nancy T. Hill, and Kevin T. Stevens ABSTRACT: This series of four short cases is designed to help students develop the skills to research the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification and other authoritative literature. It also is designed to help improve students’ ability to analyze and critique the complex issues that often surround the accounting for revenue recognition. The case scenarios describe transactions in which students must decide whether, when, and how much revenue to recognize. The issues analyzed involve bill-and-hold, multiple-element arrangements, gross versus net revenue reporting, and sales incentives. The cases are also designed to improve teamwork and communication skills. The sequence of cases is intended for use in an intermediate accounting class that covers revenue recognition, or in a capstone class that emphasizes critical thinking and research skills. Keywords: revenue; recognition; codification; research. INTRODUCTION evenue recognition is one of the top causes for financial statement restatements (Whitehouse 2010). In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment...
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...Case 1: Capital Mortgage Insurance Corporation Background Capital Mortgage Insurance Corporation (CMI) is a wholly owned subsidiary of Northwest Equipment Corporation (NEC).NEC expects Frank Randall, company president; to build CMI into a larger more diversified financial service company. To do this Randall wants to acquire Corporate Transfer Services (CTS) a small relocation services company, as part of a plan for diversification. Informal discussions took place with the principal stockholders of CTS four months ago. Currently, formal negotiation strategy plans are in the works and a purchase offer is in the development stage. If successful, the acquisition of CTS will be a first for CMI and will help Randall realize his goals for CMI diversification. Analysis CMI’s main interest is to expand their financial services and build a strong company that can hold their own against industry leader, Merrill Lynch. CMI must acquire CTS at a reasonable price to achieve this goal. They also need to retain key employees to manage CTS’s current business interests, and to foster a good relationship with CTS founder, Elliot Burr. This will allow them to make an entry into his Metro Net “old boy” network. Benefits for CMI include - a huge jump start into the corporate relocation business, immediate licensing and other legal documentation in 38 states, influential entry into the Metro Net network which would lower operation of CTS, an experienced operations manager in Tom Winder, and finally...
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...Version 2 General Certificate of Education (A-level) June 2011 Geography GEOG1 (Specification 2030) Unit 1: Physical and Human Geography Post-Standardisation Mark Scheme Mark schemes are prepared by the Principal Examiner and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all examiners participate in and is the scheme which was used by them in this examination. The standardisation process ensures that the mark scheme covers the candidates’ responses to questions and that every examiner understands and applies it in the same correct way. As preparation for standardisation each examiner analyses a number of candidates’ scripts: alternative answers not already covered by the mark scheme are discussed and legislated for. If, after the standardisation process, examiners encounter unusual answers which have not been raised they are required to refer these to the Principal Examiner. It must be stressed that a mark scheme is a working document, in many cases further developed and expanded on the basis of candidates’ reactions to a particular paper. Assumptions about future mark schemes on the basis of one year’s document should be avoided; whilst the guiding principles of assessment remain constant, details will change, depending on the content of a particular examination paper. Further copies of this Mark Scheme are available from:...
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... 2005, para. 2). Capital Mortgage Insurance Corporation (CMI) was acquired by Northwest Equipment Corporation in 1978 and was a wholly owned subsidiary (Lewicki, Saunders, & Barry, 2005). Northwest Equipment Corporation acquired CMI when the parent company went into Chapter 11 bankruptcy. The company was developed to work with residential mortgage lenders in selling mortgage guaranty insurance policies throughout the United States. The following paper will briefly describe the case at hand, what role social context will play in the negotiation process, and how the social relationship that Burr, Lehman, and Kupchak will affect the negotiation. The paper will end by describing the tangible and intangible benefits, cost, and risks associated with negotiating Corporate Transfer Services (CTS). Analyzing the case of Capital Mortgage Corporation will allow a reader to define how social relationships affect negotiations, and define the benefits, costs, and risks of the negotiation process. Case Summary CMI has an interest in broadening its financial services to strengthen the company. CMI primary goal is to be the leader in the financial services industry. CMI will have to stand against the current industry leader, Merrill Lynch, to take a large share of the market. CMI must acquireCTS at a reasonable price to achieve this goal. CMI second goal is to keep the CTS key staff and maintain a good working relationship with the current owner of CTS, Elliot Burr. CMI wants to keep...
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...not covered in the traditional financial accounting sequence. The purpose of the case is to enhance students’ research and critical thinking skills through resolving ambiguous revenue recognition cases, using the FASB’s Accounting Standards Codification (Codification or ASC) and other authoritative literature, including SEC Staff Accounting Bulletin, Topic 13: Revenue Recognition (SEC 2003). In addition, the cases seek to enhance students’ research, oral, and written skills. CASE FACTS Assembly Lines Incorporated (ALI) is a public company with a calendar year-end. In its current fiscal quarter, ending September 30, 2013, it entered into a sales agreement with Candy Maker International (CMI). Under the sales agreement, ALI is selling an assembly line system to CMI that consists of the following three components: _ Mixer Segment _...
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...Capital Mortgage Insurance Corporation The following are a few guidelines to follow when entering into negotiations with Corporate Transfer Services (CTS): 1. Identify what is important to the organization, Capital Mortgage Insurance Corporation (CMI). 2. Be willing to make small concessions towards CTS. This helps to establish a spirit of co-operation while allowing CMI to stand firm on its main issues and gain accommodation from CTS. 3. Plan for obvious reservations from CTS. Though the four CTS owners a in a positive frame of mind, negotiations can at times bring about the worst in others. Steps in the negotiation process to be utilized are: 1. Be prepared: know what your organization wants and understand what the opposition is seeking. 2. Presentation: open your side up for them and openly listen to their needs and wants. 3. Justification: support the needs of your organization and expose the weakness in theirs. 4. Explore: understand their organization’s needs and wants and find ways to make the needs of both parties come together. 5. Show: present areas in which your organization is willing to concede in order to form a better working relationship. 6. Present: possible solutions which take into consideration all points presented by both sides. 7. Wrap it up: form a plan in which the needs of both sides are met. 8. Take action: realization of the plan negotiated. Often times during this part I am reminded of persuasive public...
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...KAROLINSKA INSTITUTET a medical university Development of a new tool for healthcare company analysis CMI Corporate Database Jonas Lundberg Supervisor Associate Professor Carl Johan Sundberg Stockholm 2001 Master thesis in medical science with a major in biomedicine Centre for Medical Innovations Karolinska Institutet Sweden Contents SUMMARY....................................................................................................................................3 ABBREVIATIONS........................................................................................................................4 DEFINITIONS ...............................................................................................................................5 PURPOSE OF THE THESIS .......................................................................................................8 INTRODUCTION .........................................................................................................................9 The biotechnology industry in Sweden ...............................................................................9 Technology Transfer at Universities ...................................................................................9 A corporate database as an analytical tool.........................................................................10 Thesis disposition ...........................................................................................
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...Randall, presidentof Crpital Mo¡tgage lnsunnce Coryoration(CMI). had called Dolan,his senlorvice!ürsidentmd treasürcr, his oltice Io help hn¡ plnu theirs¡ategy into lbrcor¡pleting the ¿cquisilion Co.poüte T.a¡sfef SeNices(CTS).Thetwo menhad beof gu¡ i¡fomr¡l discustions üith the pdncip¡l stockholders olthe small enployeerelocation sefr'ices companysomefoul.monthseadief.Now, in lateMiy 1979,they weredeveloping the lerms ofa formal purchaseoffer anciplotting theif saaiegy lbf the fi¡al negotiations. The acqüisition,ifconsummated,woulclbe the first in CMI s history.FulthemoLe, it rep¡esented significantdepa.türefrom the company\ pr€sentblrsiness. ¿ Randalland Dohn knew that the ácquisitioncoüld havemaFf implic¡tions, bothfor themseLves and for the conpary they had rcviialized overthe pas¡sevefalyea$. JimDola¡ ignoredFrankRandall\ iúe¡se look and gazedout the eighth-tloorwindow overlookingPlrilAdeLphia's Inde!endenceSqLr¡re. question, We Thr¡fsnotaneasy Frank. knowtlley'Iestill looki¡g for a lor morcmotrey thir wete thi¡kingabour. thal.rhei¡urpartne¡s hLrve theirowndiir¡enccs,r¡d we Bu!bcyond wh¡t lhey'recxpe.(i¡g S0 lguesswe'dhettef thiso¡re need thinkth¡oughjust to t{lk pLetty through c¡Leillly. Company and IndustryBackground CMI was a wholly ownedsubsidiury Nofthwest of EquipnentCorporation, lnajor Á freight tfansportef and lessofof raiLcafs, conrm€rciAl aircrntt,and othef indüsüiAl parcnt equipment. Northwes! acquired h¡d CMI i0 I 978,tv o yea$ Aftef CMI's origin¡L company, investment...
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...Phase 1: Discussion Board 2 Financial Statements for Cummins, Inc (CMI) Michael McDougal MGM507B-1304A-01: Foundations of Finance Dr. John Halstead October 6, 2013 “This task was originally submitted in MGM507B-1303B: Foundations of Finance with Dr. Anthony Criniti.” Introduction Cummins, Inc. is a global manufacturing organization that functions in the industry sector in the machinery industry and trades under the stock ticker CMI (Bloomberg:Cummins, 2013). Most people associate the name Cummins with diesel engines however, Cummins a power leader that is made up of complimentary business units. These units design, distribute, manufacture, service and sell not only engines but also related technologies. Technologies include fuel systems, emission and power systems, filtration systems (Cummins:Overview 2013). In the following sections I will look at the financial statements over the last three years and highlight some key summary totals. I will describe changes in those highlighted summary totals over the three years, discuss some financial ratios and compare Cummins, Inc to its competitors PACCAR Engine PCAR),Navistar International (NAV) and Caterpillar (CAT). Financial Statements When considering financial statements there exist four primary financial statements: Income statement, balance sheets, cash flow statement and statements of shareholders’ equity (U.S Securities 2007). In this paper I will be looking at highlights from the income statement, balance sheet...
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...Economic Group. 1.Introduction The article examines Asian economies key transformation during the 2000s and provides prospects for the next decade. In this review essay, I will summarise the article consistent with sections provided by the article and offer appraisal from the economic and political perspective of the proposed prospects. Post significant transformation of Asian economic during the 2000s, the Asian markets is now major contenders in the global market. Their participation in the global market has reached a point where their actions bring global economic impacts of great consequence for the financial, commodities and goods markets. This rapid expansion into the global market brings concerns of potential global economic crisis. 2. Integrated Supply Chains and Dominant Commodity Consumers Past decade reveals integration of supply chains, industrial restructuring and labour allocation contributed to overall Asia market’s GDP growth with major acceleration from China and India. Vertical integration of supply chains with China becoming the centre with China handling most of the world’s final stages of production exports to developed world rose dramatically. Increase in share of intra-reginal trade in Asia showed shift in supply chain and growing regional interdependence strengthened after the Asian Financial Crisis. Asia has become a strong commodity consumer due to industrialisation and urbanisation, with...
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...take? How do we get them to accept our offer? Randall, president of Capital Mortgage Insurance Corporation (CMI), had called Dolan, his senior vice president and treasurer, into his office to help him plan their strategy for completing the acquisition of Corporate Transfer Services (CTS). The two men had begun informal discussions with the principal stockholders of the small employee relocation services company some four months earlier. Now, in late May 1979, they were developing the terms of a formal purchase offer and plotting their strategy for the final negotiations. The acquisition, if consummated, would be the first in CMI’s history. Furthermore, it represented a significant departure from the company’s present business. Randall and Dolan knew that the acquisition could have major implications, both for themselves and for the company they had revitalized over the past several years. Jim Dolan ignored Frank Randall’s intense look and gazed out the eighth-floor window overlooking Philadelphia’s Independence Square. That’s not an easy question, Frank. We know they’re still looking for a lot more money than we’re thinking about. But beyond that, the four partners have their own differences, and we need to think through just what they’re expecting. So I guess we’d better talk this one through pretty carefully. Company and Industry Background CMI was a wholly owned subsidiary of Northwest...
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...Framework’s (2015) main aims of Setting Direction, Engaging People and Delivering Results. * Construct a personal development plan which meets agreed objectives I have created a PDP https://www.managers.org.uk/ that can be seen below. In my plan, I have identified what my short, medium and long term objectives will be for the next 12 months and beyond. I did this by using my Performance Management Review and my personal objectives I have included relevant training courses to enhance and expand my knowledge, but also formal and informal discussions and feedback from my colleagues to assist me to reflect on my practice and develop. Part 1 – Personal Analysis Strengths | Area for Further Development | * My personal organisational skills are excellent and I work well with others in the team. * I am confident in showing other members of the team how various system work such as the Financial System. * I have shown by attending the CMI leadership course that i have excellent time management skills by juggling my work and the demands of the course and assignments. | I need to double check m work to avoid mistakes especially when working with numbers. Due to our workload I tend rush my work sometimes in orders to meet deadlines. | Opportunities | Threats | I have been given the opportunity to shadow others in meetings as well as evaluate contracts which is a responsibility for staff members two grade above...
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...ASSESSMENT ON CREATING A DYNAMIC CAREER DEVELOPMENT PLAN OF LEADERSHIP SKILLS Course: Developing personal and professional leadership practice Lecturer: Jill Machon /Jill Fortune Submission Date: 28TH March 2015 Nominal Word Count: 1000 Question: You should seek to show your progress during your studies, taking a critical approach and ensuring all your learning experiences inform your views. You should adapt and amend your plan as new information becomes available, ensuring that you can justify any changes made - keeping a reflective diary may be a way of achieving this. Steps * Introduction (100 words) * Section 1: * Section 2: * Section 3: * Section 4: * Section 5: * Conclusion (100 words) Assessment criteria Using knowledge of theories and concepts from the course reflect upon application and progression of learning and how this will affect/impact on your future management and leadership practice Excellent knowledge of theories and concepts from the course to reflect upon application and progression of learning and how this will affect/impact on your future management and leadership practice. Excellent ability to demonstrate an understanding of the impact of management and leadership practice in the wider organisational community. INTRODUCTION Continuing professional development (CPD) is recognised as a commitment by professionals to continually maintain and enhance their skills and knowledge with a view to support their...
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...1.2 |Explain how the relationship between an organisation’s structure and culture| | | |can impact on the performance of the business. | | |AC 1.3 |Discuss the factors which influence individual behaviour at work. | | | | | | | | | | | | |Learning Outcome 2 |Understand different approaches to management and leadership |Report | |AC 2.1 | Compare the effectiveness of different leadership styles in different | | | |organizations |...
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...Unit: 5001 Personal Development as a Manager and Leader Assignment: One For the Attention of: Marie Robinson Date Submitted: 16/10/2015 Student Name: Contents Contents 2 Abstract 4 Introduction 5 Section One 7 Planning and Implementing a Personal Professional Development Plan 7 Self Development and the Importance of Continual Growth 7 Self Awareness and Identifying Current Skills 8 Identifying Development Opportunities 9 Personal Development Plan 10 Section Two 12 Personal Development Plan Resources 12 Supportive Resources Required for Personal Development 12 Developed Business Case 13 Section Three 14 Processes Required to Implement a Personal Development Plan 14 Section Four 15 Welfare Working Practices 15 Assessing Staff Welfare, Supporting Records and Managerial Actions When Dealing with Staff Welfare Issues 16 References 21 Bibliography 22 Appendix One 23 Swot Analysis 23 Appendix 2 24 Honey and Mumford Learning Questionnaire 24 Appendix 3 32 Personal Development Plan 32 Appendix 4 34 Business Case 34 Appendix 5 38 Risk Assessment Form 38 Appendix 6 42 Company SOP Form 42 Abstract This assignment demonstrates the importance of continual self development in the aims of achieving organisational objectives. It identifies the importance of continual self growth and describes different methods of assessing you own current skills and abilities against specific organisational objectives. It also discusses the importance...
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