中级财务会计chPPT学习教案

1、会计学1中级财务会计中级财务会计chRecord revenue when: 1.Revenue and costs can be measured reliably2.Probable that economic benefits will flow to seller3.Seller has transferred the risks and rewards of ownership and doesnt effectively manage or control the goods4.The stage of completion can be measured reliably (fo

2、r services)Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants IFRS第1页/共33页Record revenue when: ANDth

3、ere is reasonable certainty as to the collectibility of the asset to be received (usually cash).the earnings process is complete or virtually complete.Revenues are inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or pro

4、ducing goods, rendering services, or other activities that constitute the entity s ongoing major or central operations.U.S. GAAP第2页/共33页Additional criteria for judging whether or not the realization principle is satisfied:1.Persuasive evidence of an arrangement exists.2.Delivery has occurred or serv

5、ices have been performed.3.The seller s price to the buyer is fixed or determinable.4.Collectibility is reasonably assured. In addition to these four criteria, the SABs also pose a number of revenue recognition questions relating to each of the criteria.第3页/共33页Revenue recognition is often tied to d

6、elivery of the product from the seller to the buyer. 第4页/共33页Revenue is recognized at one specific point in time when all the revenue recognition criteria are satisfied.Recognize Revenue第5页/共33页PrincipalHas primary responsibility for delivering product or service and is vulnerable to risks associate

7、d with delivery and collection.AgentDoes not have primary responsibility for delivering product or service but acts as a facilitator that earns a commissionRecognizes as revenue the gross (total) amount received from a customer.Recognizes as revenue the net commission it receives for facilitating th

8、e sale.第6页/共33页Under U.S. GAAP, when there is exceptional uncertainty:1.Installment Sales Method2.Profit Deferral MethodRecognizing revenue when goods and services are delivered as described in the previous section assumes we are able to make reliable estimates of amounts due from customers that mig

9、ht potentially be uncollectible. Under IFRS, when there is significant uncertainty regarding collectibility, revenue and expense recognition should be delayed until the recognition criteria can be satisfied.第7页/共33页On November 1, 2013, the Belmont Corporation, a real estate developer, sold a tract o

10、f land for $800,000. The sales agreement requires the customer to make four equal annual payments of $200,000 plus interest on each November 1, beginning November 1, 2013. The land cost $560,000 to develop. The companys financial year ends on December 31. 第8页/共33页第9页/共33页第10页/共33页Gross Profit $240,0

11、00 $800,000 = 30%第11页/共33页During 2013, Belmont Corporation collected $200,000 on its installment sales.This entry records the realized gross profit by adjusting the deferred gross profit account.第12页/共33页On November 1, 2013, the Belmont Corporation, a real estate developer, sold a tract of land for

12、$800,000. The sales agreement requires the customer to make four equal annual payments of $200,000 plus interest on each November 1, beginning November 1, 2013. The land cost $560,000 to develop. The companys fiscal year ends on December 31.第13页/共33页第14页/共33页In most situations, even though the right

13、 to return merchandise exists, revenues and expenses can be appropriately recognized at point of delivery.Estimate the returnsReduce both sales and cost of goods sold第15页/共33页Sometimes a company arranges for another company to sell its product under consignment. Because the consignor retains the ris

14、ks and rewards of ownership of the product and title does not pass to the consignee, the consignor does not record a sale until the consignee sells the goods and title passes to the eventual customer.第16页/共33页Percentage-of-Completion MethodCompleted Contract Method (under U.S. GAAP)Cost Recovery Met

15、hod (under IFRS)Long-term Contracts第17页/共33页At the beginning of 2013, the Harding Construction Company received a contract to build an office building for $5 million. The project is estimated to take three years to complete. According to the contract, Harding will bill the buyer in installments over

16、 the construction period according to a prearranged schedule. Information related to the contract is as follows:第18页/共33页Under the percentage-of-completion, cost recovery, and completed contract methods, all costs of construction are recorded in an asset account called construction in progress. 第19页

17、/共33页第20页/共33页The same journal entry is recorded to close out the billings on construction contract and construction in progress accounts under the percentage-of-completion, cost recovery, and completed contract methods.第21页/共33页Under the percentage-of-completion method, profit is recognized over th

18、e life of the project as the project is completed. We determine the amount of gross profit recognized in each period using the following logic:第22页/共33页第23页/共33页Notice that the gross profit recognized in each period is added to the construction in progress account.第24页/共33页The income statement for e

19、ach year will report the appropriate revenue and cost of construction amounts. 第25页/共33页Under the completed contract method, all revenues and expenses related to the project are recognized when the contract is completed. 第26页/共33页The same total amount of profit or loss is recognized under the percen

20、tage-of-completion, cost recovery, and completed contract methods, but the timing of recognition differs.第27页/共33页The balance in the construction in progress account differs among the methods because of the earlier gross profit recognition that occurs under the percentage-of-completion method. 第28页/共33页Billings on construction contract are subtracted from construction in progress to determine balance sheet presentation.CIP BillingsAssetBillings CIPLiability第29页/共33页Periodic Loss for Profi