Homework Help is Here – Start Your Trial Now!
Business
Accounting
TABLE 1: EXAMPLES OF INDUSTRY-RELATED ISSUES The impact of the new standard will be greater in industries due to the timing of their services or the nature of their products. Here are some industry-specific issues related to the new standard Defense and aerospace equipment General Dynamics disclosed that it now recognizes revenue for the manufacture ofbusiness jet aircraftata single point in reporting entities use percentage of completion accounting. The new standard replaces all existing guidelines and may significantly impact the acceleration of reported revenues. customer-as opposed to waiting for thee Cash incentives can be separate performance obligations vs. marketing incentives. Promises to provide goods Ford Motor Company disclosed that it now reports revenue sooner for vehicles subject to a guaranteed resale value. The revenue is now recognized omo separate performance obligations. Tesla reported that cars leased generally accounted for as sales revenue rather than operating leases Media and entertainment The up-front or installation setup fee can now be capitalized and deferred. WarnerMedia expects to see deferrals content (primarily its HBO segment) Currently this revenue is recognized when acoess to the library is granted evenue intellectual property such as brands, trade primarily for the Wamer Brothers segment. Microsoft disclosed the impact of the standard on sales of Windows 10 icensing and multiple-year subscriptions. The company is now recognizing revenue at the time of the contract rather than overthe evaluated to determine if there are multiple performance obligations. The outcome is dependent on customization Revenue for certain time-based fic outside evidence) that were previouslyDue to the complexity of the new recognized over time may now be recognized at a point in time. standard, Apple is waiting until fiscal 2019 to adopt the new standard since The activities of the licensee of software may impact the timing of

TABLE 1: EXAMPLES OF INDUSTRY-RELATED ISSUES The impact of the new standard will be greater in industries due to the timing of their services or the nature of their products. Here are some industry-specific issues related to the new standard Defense and aerospace equipment General Dynamics disclosed that it now recognizes revenue for the manufacture ofbusiness jet aircraftata single point in reporting entities use percentage of completion accounting. The new standard replaces all existing guidelines and may significantly impact the acceleration of reported revenues. customer-as opposed to waiting for thee Cash incentives can be separate performance obligations vs. marketing incentives. Promises to provide goods Ford Motor Company disclosed that it now reports revenue sooner for vehicles subject to a guaranteed resale value. The revenue is now recognized omo separate performance obligations. Tesla reported that cars leased generally accounted for as sales revenue rather than operating leases Media and entertainment The up-front or installation setup fee can now be capitalized and deferred. WarnerMedia expects to see deferrals content (primarily its HBO segment) Currently this revenue is recognized when acoess to the library is granted evenue intellectual property such as brands, trade primarily for the Wamer Brothers segment. Microsoft disclosed the impact of the standard on sales of Windows 10 icensing and multiple-year subscriptions. The company is now recognizing revenue at the time of the contract rather than overthe evaluated to determine if there are multiple performance obligations. The outcome is dependent on customization Revenue for certain time-based fic outside evidence) that were previouslyDue to the complexity of the new recognized over time may now be recognized at a point in time. standard, Apple is waiting until fiscal 2019 to adopt the new standard since The activities of the licensee of software may impact the timing of

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 1C: Prior to ASU 2014-09 changing the principles underlying revenue recognition, companies recognized...
See similar textbooks
icon
Related questions
Question
100%

Pick one company example in TABLE 1 and provide a conjecture about why the company recognizes revenue in that manner per ASC 606.?

TABLE 1: EXAMPLES OF INDUSTRY-RELATED ISSUES The impact of the new standard will be greater in industries due to the timing of their services or the nature of their products. Here are some industry-specific issues related to the new standard Defense and aerospace equipment General Dynamics disclosed that it now recognizes revenue for the manufacture ofbusiness jet aircraftata single point in reporting entities use percentage of completion accounting. The new standard replaces all existing guidelines and may significantly impact the acceleration of reported revenues. customer-as opposed to waiting for thee Cash incentives can be separate performance obligations vs. marketing incentives. Promises to provide goods Ford Motor Company disclosed that it now reports revenue sooner for vehicles subject to a guaranteed resale value. The revenue is now recognized omo separate performance obligations. Tesla reported that cars leased generally accounted for as sales revenue rather than operating leases Media and entertainment The up-front or installation setup fee can now be capitalized and deferred. WarnerMedia expects to see deferrals content (primarily its HBO segment) Currently this revenue is recognized when acoess to the library is granted evenue intellectual property such as brands, trade primarily for the Wamer Brothers segment. Microsoft disclosed the impact of the standard on sales of Windows 10 icensing and multiple-year subscriptions. The company is now recognizing revenue at the time of the contract rather than overthe evaluated to determine if there are multiple performance obligations. The outcome is dependent on customization Revenue for certain time-based fic outside evidence) that were previouslyDue to the complexity of the new recognized over time may now be recognized at a point in time. standard, Apple is waiting until fiscal 2019 to adopt the new standard since The activities of the licensee of software may impact the timing of
Transcribed Image Text:TABLE 1: EXAMPLES OF INDUSTRY-RELATED ISSUES The impact of the new standard will be greater in industries due to the timing of their services or the nature of their products. Here are some industry-specific issues related to the new standard Defense and aerospace equipment General Dynamics disclosed that it now recognizes revenue for the manufacture ofbusiness jet aircraftata single point in reporting entities use percentage of completion accounting. The new standard replaces all existing guidelines and may significantly impact the acceleration of reported revenues. customer-as opposed to waiting for thee Cash incentives can be separate performance obligations vs. marketing incentives. Promises to provide goods Ford Motor Company disclosed that it now reports revenue sooner for vehicles subject to a guaranteed resale value. The revenue is now recognized omo separate performance obligations. Tesla reported that cars leased generally accounted for as sales revenue rather than operating leases Media and entertainment The up-front or installation setup fee can now be capitalized and deferred. WarnerMedia expects to see deferrals content (primarily its HBO segment) Currently this revenue is recognized when acoess to the library is granted evenue intellectual property such as brands, trade primarily for the Wamer Brothers segment. Microsoft disclosed the impact of the standard on sales of Windows 10 icensing and multiple-year subscriptions. The company is now recognizing revenue at the time of the contract rather than overthe evaluated to determine if there are multiple performance obligations. The outcome is dependent on customization Revenue for certain time-based fic outside evidence) that were previouslyDue to the complexity of the new recognized over time may now be recognized at a point in time. standard, Apple is waiting until fiscal 2019 to adopt the new standard since The activities of the licensee of software may impact the timing of
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Principles
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS