Question
(1) Use the five-step model to compare revenue recognition between the two versions. HMM11 & HMM12 for 1. Contract 2. Performance obligation 3. Contract price
(1) Use the five-step model to compare revenue recognition between the two versions.
HMM11 & HMM12 for 1. Contract 2. Performance obligation 3. Contract price 4. Allocate price 5. Recognize revenue
(2) Consider the example on p.4 of the case, the last paragraph under the Section "Revenue Recognition for HMM", how would you account for the revenue from a contract for HMM11 products? How would you account for the revenue from a contract for HMM12 products?
(3) Does the accounting change in revenue recognition from HMM11 to HMM12 matter to managers of HBP? Please discuss the implications to managers.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
