Importantance and how it shaped the accounting environment
Case Study Assignment: Pick any revenue recognition standard on the FASB Codification site and prepare a response in which you discuss what this standard is, why it is important and how it has helped to shape the accounting environment.
http://asc.fasb.org/home
Accounting Bulletin 101 (SAB 101) was selected.
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Solution Preview
According to the SEC, revenue recognition has been a problem for several years and continues to be a problem. In fact the SEC recognizes the area of revenue recognition in accounting as the largest cause for financial statement restatements. In an attempt to address those concerns in the accounting world, the revenue recognition standard Staff Accounting Bulletin 101 (SAB 101) was issued. SAB 101 regulations clarify when companies can consider revenue as being earned. Consequently, the purpose of SAB 101 is ...
Solution Summary
A discussion of the SAB 101 as a revenue recognition standard is provided.