1. Describe the FASB’s rules or standard on revenue recognition. Where do we find the FASB’s...

1. Describe the FASB’s rules or standard on revenue recognition. Where do we find the FASB’s revenue recognition standard? Why is it important for an auditor that will audit sales to understand the revenue recognition standard?

Expert Solution

The Financial Accounting Standards Board (FASB) is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP).
Revenue recognition is a generally accepted accounting principle (GAAP) that stipulates how and when revenue is to be recognized. It provides a uniform framework for recognizing revenue from contracts with customers.
You can find these standards on https://www.aicpa.org/interestareas/frc/accountingfinancialreporting/revenuerecognition/downloadabledocuments/2014-09_liplan.pdf
The most important reason to follow the revenue recognition standard is that it ensures that your books show what your profit and loss margin is like in real-time. It's important to maintain credibility for your finances. Financial reporting helps keep your transactions aligned. It is very improtant for an auditor to have knowledge of Stanadards on revenue recognition in order to assure correctness of revenue of entity.

Hit like if you understood my answer.

ekkarill92 answered 2 years ago

(1) What do we mean by revenue recognition? What does GAAP say about proper revenue recognition?...

(1) What do we mean by revenue recognition? What does GAAP say about proper revenue recognition? (2) Why is the audit of revenue recognition riskier for a new company? (3) What are some justifications for not using confirmations of accounts receivable on a particular audit?

"Revenue Recognition" The revised revenue recognition accounting standard employs a five-step process to achieve the core...

"Revenue Recognition" The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to recognize income upon the transfer of promised goods or services. Use the Internet or Strayer Library to research a company that bundles a product and a service. Examine income recognition of the bundled product and service for the company by addressing each step in the five-step process for revenue recognition. Give your opinion on the most critical step for accurately reporting revenue...

What are the consequences associated with the new revenue recognition standard?

1.The revenue recognition standard, Revenue from Contracts with Customers, states a specific approach should be used...

1.The revenue recognition standard, Revenue from Contracts with Customers, states a specific approach should be used by companies to recognize revenue. The standard: a.Requires an asset-liability approach because an asset or a liability may stem from the terms of the contract and measuring the change in the asset or liability over the life of the contract results in a disciplined approach to measuring and recognizing revenue. b.Requires an earned-realized approach because the contract will result in revenue being earned and...

The financial accounting standards board (FASB) has new rules for recognition of revenue that went into...

The financial accounting standards board (FASB) has new rules for recognition of revenue that went into effect for the financial reporting periods beginning after December 15, 2017. Discuss and explain with examples the revenue recognition rules.

1. From the FASB, what is the intended purpose of the new converged revenue recognition standard?...

1. From the FASB, what is the intended purpose of the new converged revenue recognition standard? 2.How prevalent is sustainability reporting in (a) the U.S. and (b) globally? In citing specific statistics, indicate the size of the company to which the information pertains. 3. What standards or guidelines should accounting professionals involved in sustainability reporting be familiar with?

Address the following items in a memo: 1. Describe the five steps of the revenue recognition...

Address the following items in a memo: 1. Describe the five steps of the revenue recognition model. Specifically provide an explanation and example as to what signifies a performance obligation. 2. Provide an overview of Krispy Kreme's business model and summarize the unethical accounting and business practices at the company as detailed. Specifically, report on the company's channel stuffing business procedures. 3. Summarize the facts presented in Krispy Kreme's stock value. 4. Explain the relationship between the company's unethical accounting...

DESCRIBE ACCOUNTING ISSUES FOR REVENUE RECOGNITION AT POINT OF SALE.

Using FASB, research revenue recognition rules and procedures. Discuss a current rule that is either recently...

Using FASB, research revenue recognition rules and procedures. Discuss a current rule that is either recently changed or under review to change. Compare and contrast it with the current or old rule. Provide examples when considering the impact.

When we do find a significant ANOVA, we do not know where the difference lies. It...

When we do find a significant ANOVA, we do not know where the difference lies. It could be that only two groups are significantly different, or that all three groups are significantly different. In your response you mention that one problem with t-tests is that they only compare two groups at a time. This creates another problem with conducting multiple t-tests, which is that it increases our chances of committing a type I error. In what way do post-hoc tests...

Question