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?
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. ...
In a 201 word cited solution, the response explains the criteria for revenue recognition and then applies the concepts to the questions.
Environmental Analysis for Disney
You will be completing an environmental scan and economic analysis on your selected department, group, division, function, or organization (for which you will create a strategic plan), including the remote, industry, and operating environments. Your environmental scan should describe the situation completely and accurately. You should identify any major changes that you expect to affect your remote, industry, or operating environments in the next 5-10 years. This will include the following subcomponents:
a) Utilize a macroeconomic forecast of economic indicators that will affect Disney in the future and should be considered part of strategic planning.
b) Analyze the non-economic factors in the remote environment:
(1) Social and Cultural
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.
e) Identify strengths and weaknesses in Disney's operating environment that can be leveraged to capitalize on the emerging opportunities or minimize the threats that you identified in items 1-4.
f) Create three to four strategic long-term objectives that can be measured to determine the success of the strategic plan.View Full Posting Details