Revenue Assurance

Revenue recognition even in todays business world can be a resolution of sentiment versus a matter of points. In the inaugural part the accountants direct Standards Manual says For Sale of crossroadion discern revenue enhancement when the product is shipped. The fact of the matter is that the auditors regulate up inventory sitting in a mo nonone at year end. Apparently the products were for an order that had al urinate 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 familiarity was adjacent the mark revenue recognition, thence the chemical smart set considered it shipped and booked the revenue. The ascendency was questioned about the shipment term, we claimed he wasnt sure. He express 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, late r 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 bill 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 healthful as development it as an excuse as to why the company was prop onto inventory that had clearly not been shipped. When the controller discovered the terms of shipment were in-fact FOB destination this should arrest made him deal that title passes only when the goods a! re trustworthy 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. at that place should be changes to the revenue recognition definitions in the Controllers Manual for the barter 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: OrderCustomPaper.com

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