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27 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Revenue Recognition Requirements (US GAAP) |
1) Signed contract 2) Risk & rewards transferred 3) No price contingencies 4) Standard collection terms |
4 criteria |
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Revenue from sales of products or disposal of other assets are recognized at... (US GAAP) |
Date of sale |
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Revenue that stems from allowing others the use of the entity's assets is recognized when... (US GAAP) |
The assets are used (as time passes) |
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Revenue Recognition Requirements (IFRS) |
1) Rev & exp measured reliably 2) Probable economic benefits 3) Risk and rewards transferred to buyer 4) Entity does not retain managerial involvement |
4 criteria |
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Rendering of Service Revenue Recognition Requirement (IFRS) |
1) Rev & exp measured reliably 2) Probable economic benefits 3) Stage of completion can be measured reliably |
3 criteria |
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Revenue from Interest, Royalties and Dividends Recognition Requirements (IFRS) |
1) Rev & exp measured reliably 2) Probable economic benefits |
2 criteria |
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Construction Contract Revenue Recognition Requirements (IFRS) |
1) Rev & exp measured reliably 2) Probable economic benefits 3) Stage of completion can be measured reliably |
3 criteria |
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Multiple Element Arrangements - IFRS or US GAAP? - What is it? |
US GAAP ONLY: Revenue and FV of contract recognized and allocated separately for each element based on rev. recognition criteria for each element |
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Deferred Credits |
A liability - Earn it OR Return it (Cash received before it is earned) |
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Expenses |
Reduction of assets or increases of liabilities. Recognized according to Matching Principle |
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Realization |
Real World - When entity obtains cash or the right to receive cash or has converted a non cash resource to cash |
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Recognition |
Record - Actual recording of transactions and events in the F/S |
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Matching principle |
Expense must be recognized int he same period in which the related revenue is recognized -> Accrual Accounting |
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Accrual Accounting - Impact |
I/S Impact, no current cash impact |
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Deferral -Impact |
No current I/S impact, B/S impact (cash) |
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Accrued Assets |
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Accrued Liabilities |
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Estimated Liabilities |
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Expired Costs |
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Unexpired Costs |
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Prepaid Expenses |
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Deferred Charges |
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Revenue Recognition - Deferred credits |
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Revenue Recognition -Royalty Revenue |
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Revenue Recognition -Unearned Revenue |
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Revenue Recognition -Revenue Recognition when right or return exists |
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Franchise |
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