Revenue-Recognition Problems in the Communications Equipment Industry 1) In late 2000‚ Lucent announced that revenues would be adjusted downwards by $679m as a result of revenue recognition problems. Yet the firm’s market capitalization plummeted by $24.7bn. Why do you think the market reacted so negatively to Lucent’s announcements of the problems? The large drop in market capitalization is probably due to several factors. Historically‚ Lucent had successfully met analysts’ projections for
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In the past‚ my high school gave more privileges to the seniors‚ although they have taken the privileges away from the seniors every year one by one. Currently‚ the only privileges seniors have over the underclassmen are leaving five minutes early for lunch and having the senior courtyard for lunch. We believe seniors should have more privileges or benefits than the school gives to us. After EHS took away senior privileges like going off-campus for lunch and leaving class five minutes early‚
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Revenue recognition is a very important component of financial accounting and reporting. The accounting principles governing revenue recognition can have a big impact on corporate accounting and the way contracts are structured with customers. As a part of ongoing discussions to converge U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)‚ some proposals to change revenue recognition have been discussed. The following will discuss revenue
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HR in ECC Division ECC-ites go through a process of continuous learning‚ assisted by training programmes. Apart from on-the-job training and technical training‚ over 100 programmes on general management and behavioural topics are conducted each year. Interactive CD-ROM based programmes have enabled employees learn at their pace. ECC recognises that people are the real source of competitive advantage. It is through people that ECC delivers total customer satisfaction. These values are
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The IESBA Code IESBA’s (IFAC’s) Code of Ethics for Professional Accountants provides a conceptual framework that requires a professional accountant to identify‚ evaluate‚ and address threats to compliance with the fundamental principles. The conceptual framework approach should assist professional accountants to comply with the ethical requirements of the IESBA Code‚ and to serve the public interest. Guidance is provided in several areas: the identification of threats; the evaluation of the significance
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fall-out of Accounting Period concept. This concept requires that expenses incurred for a particular accounting period should be reckoned in the same period‚ irrespective of the fact whether these expenses have been paid in cash or not in that year. The same holds true for revenues‚ i.e.‚ revenues earned in a specific accounting period are construed as incomes of the same period‚ irrespective of their receipts. This concept is also known as the accrual theory of accounting or accrual accounting. This
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Carlos Briones Revenue Recognition Case Amanda Eng Alipasha Ziaee 1. Revenue Recognition for MultipleElement Arrangements The Case of Velocity Cellular a) According the ASC 60525255 there are two criteria that must be met in order to be considered a separate deliverable and a separate unit of accounting: i. The delivered item or items have value to the customer on a standalone basis
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the blade . Raymond Mill Troubleshooting II : refined powder too thick or too thin . Causes: ( 1 ) analysis of turbine blades wear serious ‚ can not afford grading effect. ( 2 ) fan flow inappropriate . Remedy: ( 1 ) Replacement blade length appropriate off a small amount of solution into the wind turbine is too rough . ( 2 ) too small and should be increased inlet air volume . Raymond Mill Troubleshooting III : Host current rise ‚ local temperature rises ‚ the fan current drops . Reason: (
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Purchase Method of Accounting All business combinations must be accounted for by applying the purchase method. This involves 3 key steps: a) Identifying an acquirer‚ b) Measuring the cost of the business combinations and c) Allocating the cost of the business combination to the identifiable assets and liabilities acquired. a) Identifying the Acquirer The acquirer should be identified for all business combinations‚ The acquirer is the entity which obtains controls over the other entity‚ There
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CORPORATION FORMATION DEFINITION An artificial being created by operation of law‚ having the right of succession and powers‚ attributes and properties expressly authorized by law or incident to its existence” (New Corporation Code) CHARACTERISTICS * separate legal entity – an artificial being with a personality separate from that of its individual owners * created by operation of law – mere agreement of the parties cannot give rise to a corporation * right of succession – continues
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