intermediate accounting Revenue Recognition参考.ppt

Revenue Recognition Revenue Recognition Revenue Recognition Revenue Recognition Revenue is not recognized prior to the point of sale because either: A valid promise of payment has not been received from the customer, or The company has not provided the product or service. Exceptions to these rules: The customer provides a valid promise of payment. Conditions exist that contractually guarantee the sale. Revenue Recognition Appropriate Layaway Accounting Appropriate Accounting for a Service Provided Over an Extended Period Appropriate Accounting for a Service Provided Over an Extended Period EITF 00-21 Appropriate Accounting for a Refundable Membership Appropriate Accounting for a Refundable Membership Appropriate Accounting for a Contingent Rental Appropriate Accounting for a Contingent Rental Appropriate Accounting for a Contingent Rental Asset-and-Liability Approach to Revenue Recognition Example Asset-and-Liability Approach to Revenue Recognition Example Measurement Model Measurement Model Revenue Recognition Prior to Providing Goods or Services Completed-contract method recognizes all income when project is completed. Percentage-of-completion method recognizes revenue throughout the term of the contract. Proportional performance method reflects revenue earned on service contracts under which many acts of service are to be performed before the contract is complete. Percentage-of-Completion Method Requirements Dependable estimates of: contract revenues contract costs progress toward completion Contract clearly specifies: enforceable rights of the parties consideration to be exchanged manner and terms of settlement Percentage-of-Completion Method Requirements The buyer can be expected to satisfy obligations under the contract. Contractor can be expected to perform the contractual obligation. Percentage-of-Completion Input Measures Cost-to-cost method is perhaps the most popular of the input measures. The degree of completion is determined by comparing costs alrea