Revenue Assurance

Revenue recognition even in todays business world can be a closure of sentiment versus a matter of particulars. In the inaugural portion the restrainers in operation(p) Standards Manual says For Sale of crossroadion agnize revenue enhancement when the product is shipped. The detail of the matter is that the auditors vomit up inventory sitting in a mo nonone at year end. Apparently the products were for an order that had al rent been filled and ready for load to the end customer. Since the product was already in the trailer and per the Controllers Operating Standards the ac association was pastime the catch up with revenue recognition, thence the chemical company considered it shipped and booked the revenue. The accountant was questioned about the shipment term, we claimed he wasnt sure. He stated in his opinion it didnt matter as they were following the Controller Standards, which the product should be recognized and recorded when its shipped. However, later it was make that the terms of shipment were in fact FOB destination. This object lesson is very interesting because I am sure in such lineaments as Eron, Worldcom and other accounting system scandals I am sure there were similar Controller Manuals that were incorrect.

In this case I feel that relying on the Controllers Operating Standards of the company was the parentage of the issue here as puff up as development it as an excuse as to wherefore the company was prop onto inventory that had clearly not been shipped. When the control condition discovered the terms of shipment were in-f act FOB destination this should fuddle made! him deal that title passes only when the goods are certain from the carrier. Since the product was good-tempered sitting on the property of the company this does not constitute shipping it. In my opinion the company should have not recognized the revenue until delivery has occurred. on that point should be changes to the revenue recognition definitions in the Controllers Manual for the cut-rate sale of products. I would first start with ensuring there is in fact an...If you want to quarter a full essay, order it on our website: BestEssayCheap.com

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