Revenue Recognition Policy: Metropolitan

Revenue Recognition Policy: Metropolitan Case Study example
College
Case Study
Finance & Accounting
Pages 5 (1255 words)
Download 0
The main aim of this memo is to show the result of the expenses and revenue recognition for Metropolitan environment service. …

Introduction

In this manner there is no physical product leaving the premise in order for revenue to be earned. Throughout the examination some of the major areas of revenue income recorded by the Metropolitan in their books of accounts include the following; Disposal non-hazardous and hazardous waste materials, the cost of transporting of the waste materials from the customer premises to where the waste are going to be disposed off, there are also cost of materials purchased to assist the job being done, labor cost is also reflected in the revenue income, allowances expenses of the employees like travelling expenses and lastly there are tax expenses which has to be paid in time. In order to analyses each and every scenario is in order to know at what point does the ownership of the waste material passes from the customer to Metropolitan and when is the contract is valid. In the first scenario, when the customer is transporting the materials to the disposal site, then the contract has not been performed substantially and the Metropolitan should not record any revenue since the contract is not fully done, the revenue should be recorded on 20th after the successful destruction of that waste. According to the accounting standards a service can be rendered as a single act or as continuous process over a period of time, charges of the same services can also be spread over the period through which the work is done. ...
Download paper
Not exactly what you need?

Related papers

Empirical Investigation of Revenue Management Applicability
American Airlines stated that revenue management aims to “maximize passenger revenue by selling the right seats to the right customers at the right time” (qtd. in Yu 69). However, not only did the RM concept spread like wildfire in the airline industry, it also garnered adequate reputation in other industries. Revenue management as it is applied can entirely aid in pricing decisions and…
Inherent Difference Between US GAAP and IFRS on Revenue Recognition
In case either requirement fails, the seller must defer revenue recognition, and accounting guidance provides special procedures for single arrangements that contains multiple deliverables and for long-term contracts (Gill, 2007). US GAAP on Revenue Recognition A firm’s gross accounts receivable reflects the amounts customers have promised to pay, and balance sheet displays these receivables net…
Internal Revenue Code/Taxable Income
For example a company may decide to purchase asset or reduce obligations out of its retained earnings. In most cases retained income does reflect the dividend policy of the company because the board will decide either to reinvest such profit or to pay them out to stockholders. The retained earning I taxable at corporate tax rate as well as pay as you earn (PAYE) on the shareholder share of profit…
Revenue recognition : goods and services
The study will comprise the major points of differences in relation to revenue recognition that will be identified under both the accounting practices (i.e. GAAP and IFRS). Analyzing these aspects, the study will ascertain the grounds on which the accounting treatment of the identified issue, i.e. revenue recognition will be different if US GAAP is replaced with the principles of IFRS.…
revenue
Income encompasses both revenue and gains.” (ec.europa.eu, p. 2) Revenue: “IAS 18 defines revenue as ‘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” (ACCA, 2013.) Gain: “An increase in the value…
International Accounting Standards: Revenue Recognition in construction Industry
Bradley Richards is a leading firm of accountants with many clients in the construction industry. The accounting practices adopted by these companies need to be reoriented in the light of these developments. This paper seeks to discuss about the important aspects with regard to revenue recognition in accounting of the construction contracts for updating our clients with the developments in this…
Financial Statement fraud and Revenue recognition fraud
We can define financial fraud as an intentional act to deceive people through manipulated financial statements for personal gain (“Bank Negara Malaysia” 1). Financial fraud is crime under civil law and involves complex financial transactions conducted by white-collar business professionals with a criminal intention (“Bank Negara Malaysia” 1). Nevertheless, financial fraud derives numerous…