ipl-logo

Telecommunication Company: A Case Study: The Transaction For Du Company

772 Words4 Pages

Telecommunication Company selling takes time through scratch cards The general principle of the revenue recognition is to be recognized only when the rewards and benefits related to the items sold or service provided are transferred. So in the telecommunication company there no revenue is recognized when the scratch card is sold, but it is recognized when the subscriber makes a call and consumes the talk time. So the revenue recognition only when the customer uses the scratch cards (Accounting explained, 2016). For example, Du Company in the UAE sells the recharger card and it cost 20 AED only so when the customer pays this card the transaction will be debit on the cash by 20 and credit unearned revenue by 20. So, since the customer consumed the card and make calls then the company will recognize revenue. The transaction for Du Company while the customer uses the card will be debit on account receivable by 20 and credit on the revenue by 20. So the idea will be the telecommunication company recognition the revenue only when the customer uses the scratch cards. Magazine Subscription Most magazine company provides to the customer an annual subscription fee to receive a monthly magazine. So, in the magazine company they recognition the revenue not when the customer pays the monthly fee, according to GAAP and IFRS, the …show more content…

The money is in their bank account. But the money cannot be recognized as revenue because Acme Corp has not yet delivered the services to that customer. If Acme Corp decides tomorrow to stop providing their inventory tracking software, the customer will have paid $79.99 for 30 days of access to the software, and only received one day. To account for this discrepancy between money the customer has paid and services the company has provided, FASB accounting rules require Acme Corp to defer the revenue, and then recognize the revenue as the service is

Show More
Related

  • Groupon Inc. And Revenue Recognition Issues

    1640 Words  | 7 Pages

    ASC Section 606-10-55 provides that if an entity is a principal and it satisfies a performance obligation, revenue should be recognized in the gross amount that it “expects to be entitled in exchange for [the] goods and services transferred” (606-10-55-37). On the other hand, if the entity is the agent, revenue should be recognized “In the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the other party to provide [the] goods and services” (606-10-55-38). The following indicators provide guidance on whether the entity is an

    Read More

  • Tax Court Case: Jim Turin & Sons, Inc.

    499 Words  | 2 Pages

    In accrual accounting, income is recorded when a sale is made and expenses are recorded when goods or services are received. If payment is made in advance for services to be completed in the next tax year, tax payment can be delayed until that next

    Read More

  • UHB Assignment

    342 Words  | 2 Pages

    Patient accounts and data flow are important because this is the point where this important information is acquired by the patient. The charge capture gathers information from the patients account with the patients care services provided by the order the physician

    Read More

  • Incorporation Case Study

    654 Words  | 3 Pages

    When James Madison drafted the Bill of Rights, he wanted some of the provisions to apply to both the states and the federal government, but the “states would not have ratified the document [Bill of Rights] had the limitations been seen as proscribing state action,” (Scheb, 28). As such, the first amendment reads: “Congress shall make no law…” (First Amendment). In other wordas, the Bill of Rights only provided protections from the federal government—the only government with a “Congress. The states could bypass these restrictions, and many did until the Incorporation Doctrine began to take shape after the Civil War.

    Read More

  • Business Case Study: Jurlique International Pty Ltd.

    2179 Words  | 9 Pages

    INTRODUCTION:- Jurlique International Pty Ltd. is an Australian cosmetics manufacturer specializing in natural botanical-based skincare and cosmetics under the brand name Jurlique. Jurlique is considered ethical and environmentally friendly. Jurlique was founded in 1985 the Australian state of South Australia by Dr Jurgen Klein and his wife Ulrike. The company 's name is based on a phonetic combination of their first names.

    Read More

  • Being A Medical Assistant Essay

    1277 Words  | 6 Pages

    When recording financial activity of a business, “any increase in expense (debit) must be offset by a decrease in assets or an increase in liability (credit)” (Routh 464). Any expense for any office supplies decreases cash or increases accounts payable. Each account is assigned a number to enter data in a list of categories “to track the sub-accounts of assets, liabilities, income, expenses, and equity” (Routh 464). This is a way to bookkeep the charts of accounts.

    Read More

  • Nt1310 Unit 3 Assignment 2

    116 Words  | 1 Pages

    I have provided them with the corrected invoice which matches what in our system. They actually received an incorrect invoices without that charge and paid accordingly. We are working to get that fix. The remaining invoices, to my knowledge, are simply late.

    Read More

  • Wgu Audit Task

    529 Words  | 3 Pages

    Clients must keep records and books of accounts including cash book, sales ledger, purchases ledger and general ledger. Supporting documents such as invoices, bank statements, pay-in slips, cheque butts, and receipts for payments, payroll records and copies of receipts issued should be retained. A valuation of the stock in trade should be made at the end of the accounting period and the appropriate records maintained. Company should record sufficient to explain each transaction and to enable a true and fair profit & loss account and balance sheet to be prepared. At the end of the accounting period, a physical stock-take should be made to ascertain the quantity and the cost of the stock in hand or the cost of work in progress statements and

    Read More

  • Hrm 300 Week 3 Child Care Center

    423 Words  | 2 Pages

    I think this situation can be improved by establishing a weekly or monthly cash flow statement depending how closely she needs to monitor the flow of revenue and expenses. By doing this, she will have the important information about how the amount of actual cash coming into the business and the amount of cash out of the business in the form of expenses,

    Read More

  • Financial Case Study: Delta Signal Company

    682 Words  | 3 Pages

    The model that we selected for our practice run and actual simulation was Low lifetime cost. We decided to implement this strategy to improve quality and customer satisfaction. Delta Signal Corporation was initially an innovative supplier that developed a wide range of products, however, these products lacked quality and customer satisfaction. Through our simulation, we hoped to combat these issues by deliberately focusing on high quality and achieving customer satisfaction while still providing low-cost products.

    Read More

  • Persuasive Essay On Credit Card Debt

    922 Words  | 4 Pages

    Today nearly everyone has to have and use a credit card (credit card) as a medium of non-cash transactions. This is because the manufacturing process tends to be easier, offer a discount for its users as well as the practicality of use. But of course there are consequences to be paid when you use that bill pembayarannnya. For some people it does not matter, but for some others, sometimes it becomes a new problem. As a result, it is instead make your life easier, but instead burdening your life.

    Read More

  • Case Study Of Motilal Oswal Company

    815 Words  | 4 Pages

    Motilal oswal securities Ltd The Motilal oswal ltd company was the parent company of the Motilal oswal securities ltd, it was the subsidiary company. Motilal Oswal Company was established by Motilal oswal and Raamdeo agarwal in 1987 and gets the membership from the BSE. It got it final certificate of registration approval in the year 2010 from the securities and exchange board of India regarding the setup and expansion of the business of mutual funds in the country. Motilal oswal securities ltd was incorporated in the year 1994 and its main business is stock broking and wealth management. Motilal Oswal Company has 99.95 % holdings previously which became 100 % holdings In Motilal securities ltd .It was one of the subsidiary company of the

    Read More

  • Apple Value Proposition

    1567 Words  | 7 Pages

    This ensures that consumers’ card numbers are never stored on the device, in Apple’s servers, or given to merchants. After the digital token is created it is encrypted and sent to Apple for verification. Then the costumers’ credit card institution verifies available balances and the transaction is either approved or denied. Apple Pay also does not sell or store transaction information, which is a common practice among credit card companies for an income

    Read More

  • Tata Communications Case Analysis

    930 Words  | 4 Pages

    1. INTRODUCTION Tata Communications is a truly global communications provider with operations, infrastructure and partnership across established and emerging markets.. Tata Communications focuses on serving key vertical segments, including banking & financial services and media & entertainment, as well as providing catalyst Tata Communications founded in 1986 by Indian Government, The TATA communication Headquarters is in Mumbai, Maharashtra. Mainly TCL key people is Vinod Kumar (CE & MD), the revenue US$2.6 billion (2011), operating Income US$182 million (2011)

    Read More

  • Advantages And Disadvantages Of Foodpanda

    2083 Words  | 9 Pages

    One of the challenges of e-business is that there are customers that prefer cash on delivery payment method because of limited online payment accesss for credit cards in certain countries. This payment method is a problem for global e-business, as it would delay the transactions of goods and payments. However, it is not a problem for Foodpanda because the food orders delivery is made within the country and hence cash on delivery is accepted. Apart from that, returning policy is also a challenge for e-business as it is more expensive with the addition of shipping and packaging cost. Foodpanda however, does not have a returning policy because the service that Foodpanda provide is a food delivery service, not goods.

    Read More

More about Telecommunication Company: A Case Study: The Transaction For Du Company

Open Document