ipl-logo

P & G Revenue Recognition Essay

814 Words4 Pages

Introduction

The intent of FASB with ASC 605- Revenue Recognition, was to level the playing field for businesses by requiring the recognizing and reporting of revenue on a consistent basis by industry. This would attempt to discourage material misstatements in financial reporting for revenues. Properly recording revenue when earned is a critical process within any organization. Revenue being a key metrics used to analyze operations and award incentives to employees, to include CEO’s. Revenue impacts every area of a company and its accuracy is vital to continuing as a going concern. CEO compensation is a hot-button issue since the financial collapse of 2008. Investors, government watchdogs’, and general public, are scrutinizing this corporate expense. P&G Compensation & Leadership Board(C&LD) purpose is to oversee compensations packages of management and to ensure they are fair and equitable.
Revenue Recognition Discussion …show more content…

P&G records revenue when title, risk of loss and ownership transfers to the customer, which can take place at FOB– shipping point or FOB–destination. The point of transfer is determined at time of contract execution. “Net Sales” for P&G, is revenue net of allowances, discounts, promotions and coupons. This treatment is consistent with industry standards and GAAP, as revenues on the financial statements can be reported at net or gross. As with P&G, most companies report revenue at net and disclose the treatment under “Summary of Significant Accounting Policies” in the financial statements

Show More
Related

Gl Consulting Case Summary

919 Words | 4 Pages

Word Count: Megan Findakly MGMT- 626: Management Consulting Pract & Meth Professor Fowler 08 December 2016 Case #3 “Divorced from ethics, leadership is reduced to management and politics to mere technique.” James MacGregor Burns After three years at GL Consulting (‘GLC’), Tim Hertach, a junior partner, learned about the “Proposal to Enhance Value,” the new revaluation proposal presented by two other GLC partners. Hertach immediately questioned the new structure, which provides senior partners, who compose 20% of the firm, with 80% ownership of the firm with huge windfalls, and more disconcerting, it leaves the other 80% of partners trying to pay for it.

Read More

Groupon Inc. And Revenue Recognition Issues

1640 Words | 7 Pages

ASC Section 606-10-55 provides that if an entity is a principal and it satisfies a performance obligation, revenue should be recognized in the gross amount that it “expects to be entitled in exchange for [the] goods and services transferred” (606-10-55-37). On the other hand, if the entity is the agent, revenue should be recognized “In the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the other party to provide [the] goods and services” (606-10-55-38). The following indicators provide guidance on whether the entity is an

Read More

Turbotax Commercial Essay

1089 Words | 5 Pages

In the 2017 Super Bowl, TurboTax released a commercial featuring the familiar tale of Humpty Dumpty. In this clip, Humpty is featured filling out his taxes online while sitting on a wall and suddenly falls. Everyone in the commercial is surprised to find out that when he fell he was filling out his taxes. The message of the TurboTax commercial can be see in their slogan, “anytime, anywhere,” (TurboTax Super Bowl Commercial). In this commercial TurboTax makes it clear that anybody can do their taxes whenever and wherever they would like.

Read More

Summary Of Phoenix And Thunderbird Merger

651 Words | 3 Pages

For the reasons noted above, ASC 805-10-55-12 does not provide strong evidence of the accounting acquirer. However, there are some useful indicators in ASC

Read More

A Million Dollar Commercial Essay

799 Words | 4 Pages

Super Bowl LII: A Million Dollar Advertisement Upon the first Sunday of February each year, the two remaining football teams in the NFL come together to compete and continue a national holiday that dates back to 1967. In that inaugural year, it cost approximately $40,000 to occupy a slot of time on the television screens of 50 million people around the country. 51 years later, in 2018, that price has been heightened to between 5 and 5.5 million dollars, now attracting nearly 100 million viewers each year.

Read More

Do Ceos Get Paid Too Much Analysis

828 Words | 4 Pages

Chief executive officers (CEOs) are the corporate employees that are responsible for managing an entire organization. Presently there is a controversy over their salary as to whether it is appropriate or not for one person to be paid so much, especially when the company or the economy may not be performing well. Philosopher Jeff Moriarty wrote an article, “Do CEOs Get Paid Too Much?” that tackles this controversy and he provides possible circumstances in which CEO salaries may be justified. Moriarty’s claim is that CEOs are paid too much, if their salaries are not based off one of three popular views (Moriarty 264).

Read More

Jim Barton And General Ledger

1028 Words | 5 Pages

1. What (else) could/ should Jim Barton have done upon arriving in his new position? …… (present one suggestion) (3 Marks) Jim Barton should have set up a meeting with the Carl Williams himself, to make sure that they both understood their positions in relation to each other, and to the company. This meeting should have taken place on the first day of employment to ensure both parties are on the same page from the start. That way, the CIO (Jim) will have the best perspective as to where the company needs to be headed as outlined for him by the CEO Williams.

Read More

Difference Between GAAP And IFRS

1016 Words | 5 Pages

The IFRS has two standards of dealing with revenue recognition while the GAAP provides several concepts as well as detailed rules to deal with revenue recognition in different industries. The IFRS requires revenue to be recognized when it is likely that the benefits associated with a transaction can be traced to the entity and quantified reliably. In contrasts, the GAAP provides criterion for determinable or fixed pricing in revenue recognition. In this case revenue cannot be recognized until the amount of the revenue is ascertained. This implies that under the IFRS revenue that is not of a set amount is recognized earlier

Read More

Kickstarter Commercial Advertisements Essay

745 Words | 3 Pages

The average college student attends about 62 parties a year. Which makes me wonder where we get the energy to involve ourselves in such activities. Apart from the fact that most college students are young and naturally just have a lot of energy, being in college can also wear anyone out because of the work load. In this essay I will describe, analyse, argue, and give my opinions on the Commercial Adverts by kickstarter the energy drink. Kickstarter is one of the thousand energy drinks in the country, although they are fairly new amongst other energy drinks, they have indeed put themselves out there.

Read More

Overview Of A Certified Revenue Cycle Specialist

557 Words | 3 Pages

What is a Certified Revenue Cycle Specialist? A Certified Revenue Cycle Specialist (CRCS) is a health care finance professional who obtained exclusive credentials through the American Association of Health Care Administrative Management (AAHAM). AAHAM Certifications The AAHAM is a national organization that provides certification exams, membership services and networking events for health care administrative professions.

Read More

Pros And Cons Of Rule Based Accounting

1439 Words | 6 Pages

Over a decade long debate has circled around principles vs. rules based accounting. In this essay we will tease out the advantages and disadvantages of each. We will then go on to discuss which one is most applicable worldwide going forward. The United States incorporates a more rules based approach whereas principles are more European based. Almost all companies are required to prepare their financial statements as set out of the financial accounting standards board (FASB).

Read More

Moral Hazard Vs Adverse Selection

869 Words | 4 Pages

By cause of the presence of D&O insurance, there are fewer financial incentives vis-à-vis directors and officers to present the duty of care and skill (i.e. the moral hazard). As a result, the precautionary function of directors or officers liability law is undermined or negatively affected by the D&O insurance. D&O insurers should take various measures to mitigate the moral hazard. Issue 3 – the method / policy to set up the bonus and allowances for executives Shareholders concern about executives may overpay themselves, get extravagant allowances, carry out unprofitable but power enhancing investments. For example, the bonus should be paid according to the executives’ performance which should be related to the company’s profit, however, many executives bonus pools are paid as a percentage of revenue.

Read More

Essay On Targeted Advertising

1377 Words | 6 Pages

Targeted Advertising: Helpful or Hurtful? Technology has challenged the rules of privacy, and people are questioning if privacy is a necessity anymore. Technology, specifically apple products such as iPhones, is a need in many people’s lives, and they cannot imagine not being able to check their phones for the weather or to ask Siri to find the closest restaurant. Unfortunately, people do not realize companies use technology for targeted advertising, which is an invasion of privacy. An invasion of privacy is when people’s private information is used to influence them and is given to other people or companies unknowingly.

Read More

Simple Agency Theory

2032 Words | 9 Pages

Remuneration, being a corporate governance issue, should be dealt with wisely since directors in the modern business world are expected to act as good corporate citizens. According to some research, high packages are justified as they do reflect the performance of those directors. Levels of remuneration should be adequate to attract, retain and motivate directors of the quality required to run the company successfully. However, directors should not be paid in excess of the adequate levels necessary for this purpose. Executive directors’ remuneration should be established such that a major portion of the remuneration should be directly proportional to corporate and individual

Read More

History Of Medieval Accounting

9657 Words | 39 Pages

DBA 7030: ACCOUNTING AND FINANCIAL MANAGEMENT LECTURERS: PROFS. GEORGE ACHOKI AND AMOS NJUGUNA THE ORIGIN, GROWTH, BRANCHES AND EMERGING TRENDS/CURRENT ISSUES OF ACCOUNTING AND ACCOUNTING PRINCIPLES ON PAGE 16 OF THE SLIDES Frasia Karua 634431 ACCOUNTING ASSIGNMENT 2 THE ORIGIN OF ACCOUTING 2 Introduction 2 Ancient Accounting 2 Babylonian Civilization 2000-3000 BC 2 Egypt Civilization 1000-3000 BC 3 Pre-Christian China 1122 - 256 B.C. 4 Greek Civilization 1-1000 BC 5 Ancient Rome 5 Medieval Accounting 6 Early Islam Accounting System- 652 AC 7 Italian Renaissance: Birth of Double Entry Bookkeeping 8 Scotland - Birthplace of the Modern Profession 11 British Commercial Law 13 America Accounting Profession 13 Professional Accountancy

Read More

More about P & G Revenue Recognition Essay

Related Topics

Open Document