Introduction
Revenue is recognizing in a different conditions according to the type of business. The study of revenue recognition will include the concept and scope of sale of goods according to IAS18, revenue recognition from rendering of services, revenue recognition of software companies, the principle of revenue recognition for airline companies, construction contracts, and services concession arrangements. Also the study will contain the customer loyalty programs, agreement for the construction of real estate, agreement for the rendering of services and sale of goods, transfer of assets from customers, exchange of goods and services, Telecommunication Company selling talk time, magazine subscription, and recognition for Media Company.
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Basically, for the service concession arrangements, there are two specified criteria. The first is the timing of the agreement recognition. The second is the measurement of the recognition carrying value. The first concept in the timing of the recognition is the consideration of the construction as an asset. Meaning to say, the property would be complete when the construction is ready to be used. The time may be determined before the finishing of the construction. For example, if the owner had almost build a building and still have one month to be ready for renting; the owner would assume it as an asset and start advertising of renting the apartments. As for the recognizing of the property, it is recognized when one of the two conditions is existed. The first would be when the property is beneficial to the economy in the early future; and the second is when the fair value of the property, that is considered an asset, is reliably measured. There must be a disclosure of several; aspects in each period of the arrangement. At the start, there should be a description regarding the arrangement. Then, there should be a consideration of the arrangement’s terms that may influence the future flow of the cash. Afterwards, an extent of all followed aspects should be clearly provided. Adding to that, the possible changes of the arrangement during its operation must …show more content…
This complication is relied on the agreement established between them and the buyer. According to real estate main services, they either construct new residential properties or managing them. In the case of renting them, the revenue recognition is normally accumulated in accordance to the GAAP. But in the case of construction, there would be two types of contracts, the first is when the agreement meets the construction design, and the second is the limited ability contracts. For the first type, the customer may change the design of the construction required by any time after starting the operation. Under this type, the revenue is recognized periodically. This means, with every change, the revenue is newly recognized. In case of the limited ability contract, the customer would have almost no influence on the design or requirements of the construction. For example, a customer approaches a real estate company to build and manage a suitable residency of four villas. The company would construct the design, determine the requirements, and start preceding the work after the acceptance of the customer. Afterwards, the customer would have no capability to cause any changes on the construction. In this case the revenue recognition would be analyzed as a selling of good. This recognition is obtained after the fulfilling of selling the goods to the customer (Dylag & Kucharczyk,
However, once sold the property would be reassessed at 1% of the sale
I prepared this project since March, but because of the anticipation of spring break, I wasted some time. Otherwise, I could finish it before the break. This project also is the last one except entrepreneur project. Those practices about economic let me understand a bit about money. I think this also will help me about financing in the
Answer: (a): Market segmentation is the first step in defining and selecting a target market to pursue and penetrate. Basically, market segmentation is the process of splitting up an overall market into two or more groups/classes of consumers. Each group of consumers is called as a market segment. Each group (or market segment) should be similar in terms of certain characteristics or product/ service needs. In business world, market segmentation is considered to be a most important tool in enabling marketers to better meet customer needs and requirements.
Any modification to a construction contract after a contract award is called a change order. Contractors will receive the package of the contract in the form of drawings, plans, equipments lists and various other documents. Then, the contractor should be able to calculate the labor cost, material cost, and schedule based on the original package that they received. Changes can be initiated by all parties in the construction process. All changes, however, must be approved by the owner before implementation.
But they strictly wanted the property to remain a residential property with minimum to no commercial use. Since this was not going anywhere we decided to talk about our other concerns. Price also seemed to be a big point of conflict between us. The seller expected to receive twenty million dollars, more than their alternative offer of nineteen million dollars from Quincy Market. I knew my reservation price was twenty million dollars hence I did not proceed further.
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
Chapter 1: PROPERTY MANAGEMENT 1.1 WHAT IS PROPERTY MANAGEMENT? Property Management is the operation, control and oversight of a residential, commercial and/or industrial property. The property manager acts on behalf of the owner to preserve the value of the property owned. In return for fee or a percentage of the rent brought in from the property, the property manager provides services to the owner for different types of properties including residential and vacation properties, commercial retail spaces and industrial warehouses.
As sellers in this system aim to maximize profit, they will find ways to make production efficient and cost low. And because the buyers are willing to pay for the services and products that they
As you can see in Appendix 1 our analysis revealed that according to new cost accounting system the profitability of Regular model is about 90% whereas profits from selling Deluxe model is about 10%. In the meantime production costs of Regular model is about 45% and Deluxe model is 55%. Thus we may conclude that for Alice, Inc. it is not profitable to produce Deluxe model comparing to Regular model, as costs for production of Deluxe model are higher but the profit is lower.
Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.
The investors need to follow a time and money rule while investing in real estates. Usually, in real estate investment, it takes twice the expected time and thrice the estimated amount to make a unit ready for rent or sale. So, you should take this into consideration while calculating your total profit. 8. Investing in a property blindly Many investors make the mistake of buying properties based on bad advice.
This data can be used to preparing the accounting statement and reports. (Fontinelle, 2017).Accounting Information System is used for to produce the external stories related to the financial statement, supported through routine activities, Decision Support and Planning and Control, Implementing internal control. Accounting Information roles are classified into External Auditor, Tax Accountant, Consultant and Internal Auditor, Business Analyst, Budget analysts, Financial Analyst, controller and Accounting Clerk. It is discussing the future, and current role of Accounting Information system is analyzing by accountant responsibility and financial
Contracts can be made very widely from a written document to a verbal promise. There are some different types of contract. Mainly, it is distinguished to five groups, i) Oral and Written contract ii) Bilateral and Unilateral contracts iii) Express and Implied contracts iv) Void and Voidable contracts v) Distance selling contracts All these contracts have different features and impacts.
Using data gotten primarily by observation and secondarily by review of other literature, the paper researches on the present impact of housing deficiency on Architecture. The paper provides the positive and negative impacts of housing shortage on architecture in Nigeria, such as,
1- Investment decision 2- Financing decision, 3- Assets Management decision.