CHAPTER 5 Revenue Recognition after Delivery * Assumes we are able to make reasonable estimates of amounts due from customers that potentially might be uncollectible. * For product sales this also includes amounts not collectible due to customers returning the products they purchased. Installment Sales * Increasing the length of time allowed for payment usually increases the uncertainty about whether the store actually will collect a receivable * The increased uncertainty concerning
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Plan 8 Price Action Plan 8 Place Action Plan 8 Promotion Action Plan 8 Monitoring Procedures 9 Introduction Company G is introducing a new product in the XG line of products. It encompasses many of the features used in the ceramic heating elements of other XG small appliances. It is the XG Flat Iron. It weighs less and has an anti-frizz technology that is unlike anything on the market. It is a new innovation with all the technology, quality and convenience that you have come to expect from
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Week 1- Law 122 : Why study law 1. Business decisions have legal consequences which affect profits and losses: * Some decisions impose liability, others create opportunities * Negative: dumping pollutants into environment * Positive: binding contractual party to promise 2. Risk mgmt. tool: Law sets the framework for risk, it gives you tools to manage the risk * Ex. Insurance, exclusion and limitation clauses, incorporation Dimensions of course 1.
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Answers Professional Level – Essentials Module, Paper P2 (INT) Corporate Reporting (International) 1 (a) Bravado plc Consolidated Statement of Financial Position at 31 May 2009 $m Assets: Non-current assets: Property, plant and equipment W9 Goodwill W2 Investment in associate W3 Available for sale financial assets W10 June 2009 Answers 708 25 22·5 44·6 ––––––––– 800·1 ––––––––– 245 168 1 209 ––––––––– 623 ––––––––– 1,423·1 ––––––––– Current assets: Inventories W10 Trade receivables W11
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Law 101 Part 1 Ben and Carl are proposing to start their own business and need to know the most appropriate structure to use when setting up their business. There is clear intention from both parties to establish a business as shown by Ben and Carl’s confidence of “a good gap in the market” that will lead to “the business being a success”. The three structures available for business owners are sole trader, partnership or company. From the information provided in the scenario Ben and Carl can exclude
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location services that routes messages from the ships at the sea to the shipping company’s offices. Lighthouse provide to their customers the devices that must be install in the ship and the services, but clients need sign separately contracts for each of ones. Service contracts generally are for twelve months and are billed monthly. The standards prices are $10,000 per unit device and $300 monthly per service. Devices are made to be exclusively with the Lighthouse services. Customers may cancel the
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Difference between contract law, tort law, and common law. * Contract law refers to written agreements and oral promises * General principles of contract law determine whether an employer-employee relationship exists and what remedies apply to breach of the employment agreement. * A contract has three elements, offer, acceptance and consideration. * Tort law refers to any wrongdoing * A tort is a wrong for which there is legal remedy. * Tort law is a branch of civil law
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(SS) subject: Contract with Citizen-Schwarz AG (C-S AG AG) date: September 27, 2010 cc: Kevin Grant Project Director for Span Systems ------------------------------------------------- As you may be aware we are currently in a one year contract with Citizen-Schwarz, a German Bank. This contract is one of our largest and most prestigious banking software projects worth $6 million and upon completion it could potentially lead to obtaining the e-CRM order. Our contract with C-S AG meets
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transactions may differ. Discussion 5-step revenue recognition proposed model 1. Identify the contract 2. Identify the separate performance obligations 3. Determine the transaction price 4. Allocate the transaction price to separate performance obligations 5. Recognize revenue as performance obligations are satisfied Basic elements of the proposal * It would apply to all contracts with customers except leases, insurance, financial instruments and certain nonmonetary exchanges
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system” of passing ownership whereby the mere intention of the parties to transfer and accept ownership is sufficient, independent of the existence or non-existence of a valid underlying causa. Ownership will pass even if an underlying causa (like a contract of sale) is lacking, putative or invalid. Among the essential requirements of ownership, in which we are specifically interested include the conditions that (i) the delivery must be made by the owner of the goods, or by an agent of his/her who is
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