are needed for the hardware to work perfectly‚ it cannot be within the scope of ASC 985-605. 2.) On the basis of the response to Question 1‚ discuss the revenue recognition accounting literature that would be applied to each unit of accounting in the February 1‚ 2012‚ arrangement. Provide the cumulative revenue recognized and deferred revenue balance related to the Buffett arrangement as of April 30‚ 2012. Coconut’s February 1‚ 2012 arrangement with Buffet is within the
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Financial accountants and independent auditors commonly face challenges Abstract Financial accountants and independent auditors commonly face challenging technical and ethical dilemmas while carrying out their professional responsibilities. This case profiles an accounting and financial reporting fraud orchestrated by the chief financial officer (CFO) of a major public company and his subordinates. The CFO‚ who was a CPA‚ took extreme measures to conceal the fraud from his company’s audit
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determined that the standalone relative selling price of the training services and additional PCS were $3‚000 and $2‚000‚ respectively. At the time of execution of this agreement‚ the customer management system had been delivered and all other revenue recognition criteria related to the system were met. The training services are scheduled to begin on June 1‚ 2012. Required: 1. Is Coconut’s February 1‚ 2012‚ arrangement with Buffett within
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Case 06-12 Outsourcing Services‚ Inc. Outsourcing Services‚ Inc. (OSI)‚ a SEC registrant‚ provides a variety of EDP and payroll processing services to third parties. OSI recently has introduced a new service line to provide product help-line support services through customer service representatives (CSRs) who are employees of OSI. On January 1‚ 2004‚ OSI entered into a service contract with Company X. Pursuant to the terms of the contract‚ OSI’s CSRs will provide technical support for Company X’s
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time of sale‚ Essential should record as additional cost of goods sold‚ not as a reduction in revenue‚ because the free product does not represent a return‚ refund‚ or rebate of a portion of the sales price paid by the customer. Point and Loyalty Programs Customers can redeem specified quantities of points for awards such as free or discounted products. For this situation‚ Essential should not deferred revenue related to points awarded to customers. Part Two: Development cost Application Development
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REALITIES OF LIFE Men and women’s ways of thinking‚ behaving In Virginia Wolf’s To the Lighthouse‚ the reality of differences and inequities among the sexes is manifest throughout the book. Mrs. Ramsay’s thoughts about men and their status in society‚ shows the culture of society during that period of time. She is a compassionate woman and has an especially soft spot for young men. “She had the whole of the other sex under her protection…for their chivalry and valor…they negotiate treaties‚ ruled
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goals set by management. In the mid-90s a goal was set to hit revenues of $1 billion. This goal was deemed manageable based on their operating profit that they had shown over the years. As time passed‚ the goal became more difficult and the sense of urgency to claim revenue became a must. Several situations led to fines that would later be placed on the company’s executives including: Christopher Crawford [CFO‚ CPA]: Claimed revenue from a barter transaction that passed materiality by auditors
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000 59.52% 2013 4‚250‚000 0 4‚250‚000 100.00% 1‚619‚200 1‚669‚200 -50‚000 Cost Incurred to Date Estimated Costs Total Estimated Costs % Completed Revenue Expense Gross Profit 400‚000 1‚980‚800 350‚000 2‚230‚800 50‚000 -250‚000 2011 Account 1) Record Construction Costs CIP Various Accounts 2) Record Revenue Construction Expense CIP Revenue 3) Billings A/R Billings on CIP Dr 350‚000 350‚000 Cr 2012 Dr 2‚150‚000 Cr 2013 Dr 1‚750‚000 Cr 2‚150‚000 1‚750‚000 350‚000 50‚000
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Overlook Video Stores Inc. (OVS) To: Ms. Alice Hartford‚ Partner From: CA‚ Audit Senior Re: Planning for the year end 2009 of OVS and requested control deficiency information Engagement Overview The purpose of this memo is to document the planning of the financial statement audit st engagement of our client Overlook Video Stores Inc. (OVS) for the year ended December 31 ‚ 2009. OVS has been our client since its inception in 1998. This year’s audit will commence January‚ 2010‚ th
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Virginia Woolf’s novel To The Lighthouse suggests that life’s meaning lies in the discovery of a power which destroys time. Mrs. Woolf’s book presents two different concepts of time. One is the time of man’s world; the record of human events. It can be measured by clock and calendar and its passing brings change‚ decay‚ and death. The other is that time of a world apart from man. It is the endurance of nature and the flux of history. It knows not of man‚ death or decay‚ and it cannot be measured
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