Revenue Recognition Policy
Revenue Recognition Policy (Note 2):
A. Sale of goods Revenue Recognition
According to the annual report's financial statement notes, CV Technologies (CVT) recognizes revenue when the title of goods is passed on to the customer, and when reasonable assurance exists regarding the measurement and collection of the consideration given. This means that once CVT ships its goods to their reliable customers, they will account for those goods as sold, and recognize the contract amount as revenue. This policy, although it is slightly aggressive, does adhere to GAAP, but it does require a look at other financial statement accounts for its efficiency and suitability for the company. Since CVT is operating on credit, it is imperative that the clients are accountable for debt payments, and their risk is assessed on a continuous basis. As it states in the annual report, the risk of bad debts is mitigated by proactive credit management policies that include regular monitoring of the debtor's......
View the rest of this paper...
Approximate Word Count: 1218
Approximate Pages: 5 (250 words per double-spaced page)
Why should you join Frat Files?
- - It's safe, secure, and private.
- - Instant access to over 100,000 papers. New papers are added hourly.
- - Fast and reliable customer support.
Similar Essays
-
Revenue Recognition Policy
Revenue Recognition Policy. Revenue Recognition Policy (Note 2): A. Sale of
goods Revenue Recognition According to the annual report's ... -
Revenue Recognition At Ea
... that the same category deferred net revenue in FY2008 will likely be $400 to $500
million as a result of this change to their revenue recognition policy. ... -
Informix Revenue Recognition
... The analysis of this case will shed light on issues like: v Informix's revenue
recognition policy prior to 1990 and its compliance with FASB Concept #5, FASB ... -
Manager Infrastructure + Finance
... period and the return period should trigger revenue recognition. With regards to
the 2% discount on payments completed within 10 days, this policy could be ... -
Boston Chicken, Inc.
... prospects? 1. The policy of revenue recognition has a significant impact
on the company¡¯s financial statements. Presently more ...
Frat Files
Members
Information
© 2009 FratFiles.com.