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Revenue recognition in current environment

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What is the current environment regarding revenue recognition? When is revenue usually recognized? What conditions should exist for the recognition at date of sale for all or part of the revenue and income from the sale transaction? When is revenue recognized for the following:

From Selling Products?
From Rendering Services?
From Permitted Other to Use Enterprise Assets?
From Disposing of Assets Other than Products?

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Revenue recognition under GAAP was defined in FASB Statement of Financial Accounting concepts No. 5 many years ago. It stated that revenue is recognized when a transaction occurs and 1) the revenue is realized or realizable, AND 2) the revenue is earned.

Next the SEC issued guidance in SAB 101 stating that the two criteria above are met when ALL the following are established:

1. Persuasive evidence of an arrangement exists. ...

Solution Summary

In a 201 word cited solution, the response explains the criteria for revenue recognition and then applies the concepts to the questions.

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(3) Technological

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c) Complete a competitive analysis of Disney position from a microeconomic perspective based on the pricing of the organization's primary product or service line, an assessment of its cost structure, and an assessment of the market in which the organization competes. (Note: This should be a discussion, not a spreadsheet.)

d) Develop a summary of the organization's current situation, including its mission or business overview, its current competitive position, and the forces and trends in its industry. Based on this situation, you will identify three to six current opportunities and issues you believe should be addressed through the strategic-planning process.

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