INTRODUCTION
Revenue recognition is one of the top causes for financial statement restatements. In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment letter process. Furthermore, revenue recognition is often prey to financial fraud.
Coverage of revenue recognition in intermediate accounting courses is typically limited to learning and applying the criteria for revenue recognition outlined in the Financial Accounting
Standards Board’s (FASB) Statement of Financial Accounting Concepts No. 5, Recognition and
Measurement in Financial Statements of Business Enterprises, to routine transactions and topics, such as
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CCPC discontinues the coupons for its new detergent on October 1, 2009. The coupons expire on October 1, 2010. CCPC has not offered coupons on detergent before, nor have they offered coupons with a one-year expiration period. They have, however, offered coupons with a six-month expiration date on other products. Those coupons had a 1.5 percent redemption rate. CCPC estimates that approximately 2 percent of the detergent coupons will be redeemed by customers prior to the expiration date. However, CCPC does not have any data on the redemption rate for coupons offered on detergent. CCPC has sold (and recognized revenue for) over $2,000,000 of Fresh & Bright into the supply chain by September 30, 2009.
Case 1: Requirements
CCPC is considering how it should account for the Fresh & Bright coupon drop that took place on October 1, 2009. In doing so, CCPC asks for your help. Prepare a memo addressing the following questions. Base your analysis of the following questions on the relevant authoritative literature and discuss the support in that literature for your conclusions. Be sure to cite the relevant components of the Codification (available at: http://asc.fasb.org) in your discussion. Citations are not required for journal entries.
*Note: the questions are used as a guide for your memo. This is not an “Answer the questions” assignment.
1. What are the accounting issue(s) and the relevant components of
The usage of discount coupons is simple and holds a lot of profit with website based coupons you get online from a store where securing is a factor you are incumbent to establish.
4.2.1. The system must store new coupons in the coupon database if the coupon is not already stored in the database
Those who take the time to post match-ups will almost always tell you the source and date of the coupon. That makes it easy to go to the correct file and cut the coupons you need for that week's shopping trip.
All you have to do is like a stores page and then you’re able to get coupons specifically for that store. The newest trend in Extreme Couponing is the use of smart phones. Large companies such as Target and JC Penny have mobile applications that send coupons straight to your phone. Companies are trying to make it easier for consumers to get coupons for incentive to shop at their stores. Many stores are using “Catalinas” which are programs that know what you buy based on your current purchase, or purchases that you have made in the past, and they print off specialized coupons for you at the register. It’s like data mining where it sifts through consumer data, which is identified and analyzed into meaningful relationships. However now that these coupons are so easy for Extreme Couponers to get their hands on, it’s causing problems for many companies.
Impulse buys. Also since people carrier their cell phone with them, the coupon isn’t forgotten.
The cut back on coupons actually helps, because the lower prices + the coupons still available = extra savings.
2. On the basis of the response to Question 1, discuss the revenue recognition accounting literature
According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the
Coupon codes are a great way to save money on your pet food shopping, and in times where everyone is thinking about tightening their belt, why not treat your dog to a bit of luxury? It’ll hardly cost you an arm and leg, and the money you save with the coupons will buy your dog many treats and toys that will keep your dog
Organization is what will keep you sain when you have hundred of coupons laying around all over your kitchen counter. First, go to your local store and buy a binder with dividers, marker, and sticky notes. Then, take your couponing binder to where you previously left your already cut coupons. Next, place all of the stacks of the same coupons inside the binder. Get a sticky note and the marker you have just bought, then place the sticky note over a stack of coupons, and write when the coupon expires. Remember that organizing this binder is a never ending task. Each few days, coupons will expire and you will need to throw them away and the sticky note of expiration date. However, when you get new coupons, you can place the new coupon where the expired coupon was and include a new coupon with the expiration date. Put the coupons in the very front that you will be using at the front of the binder. This will help the chaos at the store to be very
Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,
The 500,000 coupons could be used through October 1, 2010. CCPC has data one six month coupons for other products but does not have any data on one year coupons for detergent. CCPC estimates that two percent of the detergent coupon will be redeemed. As of Septemeber 30, 2009 CCPC has sold $2,000,000 of Fresh & Bright.
Anaconda Sports also publishes coupon codes that offer about 10-15% discounts. These discounts can mostly be availed on regular priced items. However, there are some coupons that can be used on top of already
Their previous coupon codes have been for up to 65% off. Any promo codes we find for Picaboo, will be posted here along with the latest deals.
That’s what you do every time you miss an opportunity to use coupons. You are offering to pay more money for something than what you have to pay if you use coupons. Let’s review the value of clipping coupons. Coupons can save you money that can help you pay bills, make a purchase, save for your college education, save for your children’s college education or start a retirement fund. There is no out of pocket expense in order to reap these benefits, just a very small portion of your time. Let’s look at the flip side of the coin. If you don’t clip coupons, you won’t have extra money to help with expenses and purchases. You may have to take out a loan for purchases and expenses and incur interest expense as well. If you were diligent in your quest to save, you could be $75,000 richer in ten years. When you buy a lottery ticket your odds are 1 in several million that you will win. With coupons there are no odds, just solid savings. Coupons are free money for the taking. Take the time to clip coupons out of the newspaper or get them online. It only takes a few minutes of your time and saves you money that you can use for whatever however you choose. Capital One asks What’s in your wallet. I can tell you what won’t be in your wallet, if you don’t take advantage of coupons,