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CHAPTER 5 Revenue Recognition and Profitability Analysis 321 Required: On the basis of the information the disclosures provide, compare revenue recognition under IFRS (as applied by Vodafone) with that in the United States. ThyssenKrupp AG, headquartered in Germany, is one of the world’s largest technology companies, with almost 160,000 employees worldwide and primary segments in steel, technology, and capital goods and services. Required: 1. Access ThyssenKrupp’s most recent annual report using the Internet. Find the footnote describing significant accounting policies. Indicate the methods that ThyssenKrupp uses to account for long-term construction contracts when they can and cannot make an accurate estimate of the income on a construction contract. 2. If ThyssenKrupp was a U.S. company, how would you expect its accounting for these contracts to differ? The following Trueblood case is recommended for use with this chapter. The case provides an excellent opportunity for class discussion, group projects, and writing assignments. The case, along with Professor’s Discussion Material, can be obtained from the Deloitte Foundation at its website www.deloitte.com/us/truebloodcases . Case 12.5: Aren’t We Done Yet? This case concerns the appropriate timing of revenue recognition for a long-term construction contract, including percentage-of-completion, completed contract, and zero-profit methods used pre-ASU No. 2014-09 under U.S. GAAP and IFRS. The following Trueblood case is recommended for use with this chapter. The case provides an excellent opportunity for class discussion, group projects, and writing assignments. The case, along with Professor’s Discussion Material, can be obtained from the Deloitte Foundation at its website www.deloitte.com/us/truebloodcases . Case 12-4: Hemo-Tech This case concerns indentifying multiple deliverables and their sales prices in a multiple-deliverable contract, as well as identifying the relevant standard used pre-ASU No. 2014-09 under U.S. GAAP and IFRS. The following Trueblood case is recommended for use with this chapter. The case provides an excellent opportunity for class discussion, group projects, and writing assignments. The case, along with Professor’s Discussion Material, can be obtained from the Deloitte Foundation at its website www.deloitte.com/us/truebloodcases . Case 10-11: Eye Vision This case concerns the appropriate timing of revenue recognition for a bundled product and service used pre-ASU No. 2014-09 under U.S. GAAP and IFRS. EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet. Required: 1. Access EDGAR on the Internet. The web address is www.sec.gov . 2. Search for Jack in the Box, Inc. Access the most recent 10-K filing. Search or scroll to find the financial statements and related notes. 3. Answer the following questions related to the company’s revenue recognition policies: a. When does the company recognize initial franchise license fee revenue? b. How are continuing fees determined? 4. Repeat requirements 2 and 3 for two additional companies that you suspect also earn revenues through the sale of franchise rights. Compare their revenue recognition policies with the policies of Jack in the Box. IFRS Case 5–19 Comparison of revenue recognition for construction contracts IFRS Trueblood Accounting Case 5–20 Revenue recognition for long-term contracts IFRS Trueblood Accounting Case 5–21 Revenue recognition for multipledeliverable contracts. Trueblood Accounting Case 5–22 Revenue recognition for multipledeliverable contracts involving software Real World Case 5–23 Revenue recognition; franchise sales


Spiceland_Inter_Accounting8e_Ch05
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