English Audio Bible - Job (COMPLETE) - New American Standard Bible 1995 ...

HOLY ROSARY FROM LOURDES - 2023-12-31

Catholic Daily Mass - Daily TV Mass - December 31, 2023

Being A Muslim Woman In America 🇺🇸

English Audio Bible - Esther (COMPLETE) - New American Standard Bible 19...

Rosary from Lourdes - 30/12/2023

Sat, Dec 30 - Holy Catholic Mass from the National Shrine of The Divine ...

Music of Angels and Archangels | Heal All the Damage of the Body, the So...

Gregorian Chant - Lord, have mercy - Templars Chant

Catholic Daily Mass - Daily TV Mass - December 29, 2023

Rosary from Lourdes - 29/12/2023

Amazed and Afraid

Accounting: The Language of Business - Vol. 2 (Intermediate: Part 120)

Jim Rohn

"Don't wish it were easier, wish you were better"

 Revenue Recognition (Part G)

by

Charles Lamson

Step 3: Determine the Transaction Price (continued from Part 119)

Recall from Exhibit 8.1 from Part 114 and reintroduced below, the five steps in revenue recognition. In this post, we continue our discussion of Step 3.

Also recall from part 119 that the transaction price is the amount that an entity will ultimately recognize as revenue. Measuring the transaction price can be quite simple in some cases. For example, assume a customer shopping at a retail store selects and pays $100 cash for a new dress. The transaction price is $100. However, with complex transactions, determining the transaction price is involved. Sellers consider the effects of a number of different factors when determining the transaction price, including:

1. Variable consideration and constraining estimates of variable consideration

2. Any significant financing component in the contract

3. Noncash consideration

4. Consideration payable to a customer

In part 119, we discussed variable consideration and constraining estimates of variable consideration. This post discusses any significant financing component in the contract,

Significant Financing Component

In contracts when delivery of the goods or services occurs in advance of the payment, the seller is providing financing to the buyer. Alternatively, in contracts when delivery occurs well after payment, the buyer is providing financing to the seller. When the time lapse between payment and delivery is more than one year, entities are required to separate the revenue generated from the contract from the financing component if the financing component is significant at the individual contract level.

The rationale is that the seller should recognize revenue at the amount that properly reflects the price that a buyer would pay if payment occurred on the same date as delivery. In determining whether a significant financing component exists, the entity considers three factors:

1. The difference between the contract price and the cash selling price of the goods or services.

2. The length of time between delivery and payment.

3. The prevailing interest rate in the market.

Once an entity concludes that there is a significant financing component, it determines the transaction price by using the time value of money:

• If the delivery occurs before payment, the entity discounts the promise consideration amount back to the present value, using the same discount rate it would use if it entered into a separate financing arrangement.

• If delivery occurs after the payment, the entity determines the future value of the payment, using the same discount rate it would use if it entered into a separate financing arrangement.

The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the present or future value as interest revenue if the payment occurs after delivery or interest expense if the payment occurs before delivery.

 We present an example of a contract with a significant financing component in Example 8.9.

 

Example 8.10 provides an illustration of a scenario in which the delivery occurs after the payment. 

*GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 384-385*

end

Training Vlog: Day 50 of Year 3 of Operation Great Reset - Build Back Be...

What is the 6th Industrial Revolution? Industry 6.0(Future Concept), also known as the sixth industrial revolution, is characterized by using advanced technologies such as quantum computing, and nanotechnology over the pre-built Industry 5.0 architecture. Quantum computing is a multidisciplinary field that uses quantum mechanics to solve complex problems faster than classical computers. It involves a type of computer that is 158 million times faster than the most sophisticated supercomputer. Quantum computing is different from AI. AI is a method, process, or software, while a Quantum Computer is the hardware. Another lousy day of training. I'm off-cycle from a stack of my favorite prohormones. So my training has been very weak and sluggish the last month or so, but I seem to be getting a tiny bit stronger every day. It's just taking me awhile to get my strength back, without my favorite performance-enhancing chemicals.

Catholic Daily Mass - Daily TV Mass - December 28, 2023

HOLY ROSARY FROM LOURDES - 2023-12-28

THIS IS ETHIOPIA: the country frozen in time

Training Vlog: Day 49 of Year 3 of Operation Great Reset - Build Back Be...

What is the 5th Industrial Revolution? The term Industry 5.0 (Fifth Industrial Evolution) refers to people working alongside robots and smart machines. It's about robots helping humans work better and faster by leveraging advanced technologies like the Internet of Things (IoT) and big data. It adds a personal human touch to the Industry 4.0 pillars of automation and efficiency. Another horrible day of training lol. Been going through a long, several-month period of training through illness and losing strength, endurance, and stamina, along with just physical impediments, lack of access to my normal roadwork training areas, and just scheduling, and time restraint challenges, limiting my availability to train as much as I would normally like to. Though, I have persevered and kept pushing through. So, while the training performance in this video was somewhat lackluster, it was better than any of the roadwork training I did last week.

Catholic Daily Mass - Daily TV Mass - December 27, 2023

Rosary from Lourdes - 27/12/2023

Catholic Daily Mass - Daily TV Mass - December 26, 2023

Rosary from Lourdes - 26/12/2023

The REAL Cuba that they don't show you 🇨🇺

Rosary from Lourdes - December 25, 2023

Catholic Daily Mass - Daily TV Mass - December 25, 2023

Inside Rome's Most Dangerous Hood 🇮🇹

English Audio Bible - Nehemiah (COMPLETE) - New American Standard Bible ...

528 Hz Solfeggio frequency DNA Repair "Hymn to St. John the Baptist" fo...

528 Hz ➤ Gregorian Chant || 1 hour of Healing Music

HOLY ROSARY FROM LOURDES - 2023-12-24

Catholic Daily Mass - Daily TV Mass - December 24, 2023

English Audio Bible - Ezra (COMPLETE) - New American Standard Bible 1995...

Accounting: The Language of Business - Vol. 2 (Intermediate: Part 119)

Whenever you find yourself on the side of the majority, it is time to pause and reflect.

Mark Twain

Revenue Recognition (Part F)

by

Charles Lamson

Step 3: Determine the Transaction Price (continued from Part 118)

Recall from Exhibit 8.1 from Part 114 and reintroduced below, the five steps in revenue recognition. In this post, we continue our discussion of Step 3.

 

Also recall from part 118 that the transaction price is the amount that an entity will ultimately recognize as revenue. Measuring the transaction price can be quite simple in some cases. For example, assume a customer shopping at a retail store selects and pays $100 cash for a new dress. The transaction price is $100. However, with complex transactions, determining the transaction price is involved. Sellers consider the effects of a number of different factors when determining the transaction price, including:

1. Variable consideration and constraining estimates of variable consideration

2. Any significant financing component in the contract

3. Noncash consideration

4. Consideration payable to a customer

Variable Consideration and Constraining Estimates of Variable Consideration

Variable consideration is when the payment received for providing a good or service is not a fixed amount. The amount of consideration may vary from a fixed amount due to price concessions, performance bonuses or penalties, discounts, refunds, rebates, and incentives. Elements of variable consideration may be stated explicitly or implicitly in the contract. For example, a discount for early payment typically offered by a seller is considered an element of variable consideration, even though it may not be specified explicitly in the contract.

If variable consideration is included in the contract, then the entity must estimate the consideration that it expects to receive using one of two acceptable approaches: the expected-value approach (discussed in Part 118) or the most-likely-amount approach (discussed below). The entity should use the approach that provides the best estimate of the amount of consideration it will receive.

Most-Likely-Amount-Approach. The most-likely-amount approach uses the single most likely amount in a range of possible consideration amounts as the estimate. This approach is best suited when there are only two possible outcomes. Example 8.7 illustrates estimating variable consideration under the most likely amount approach.

Constraining Estimates of Variable Consideration. Entities must also assess the contract to determine if there are any constraints to variable consideration. For the entity to include variable consideration in the estimated transaction price (and thus the amount of revenue recognized), It has to conclude that it is probable that a significant revenue reversal will not occur in future periods. “Probable” is generally interpreted as 70 to 75%. This assessment requires the use of a cumulative probability level to determine if the definition of probable (likely to occur) is met. Example 8.8 provides a case with a constraining estimate of variable consideration. 

Variable Consideration and Constraining Estimates of Variable Consideration: International Financial Reporting Standards (IFRS). In estimating the constraint on variable consideration, Generally Accepted Accounting Principles (GAAP or U.S. GAAP) uses the term “probable,” whereas IFRS uses the term “highly probable.” The definition of “probable” under U.S. GAAP and “highly probable” under IFRS are essentially the same. 

*GORDON, RAESY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 382-384*

end

He Found Freedom in the Desert 🇺🇸

Rosary from Lourdes - 23/12/2023

Catholic Daily Mass - Daily TV Mass - December 23, 2023

Rosary from Lourdes - 22/12/2023

Catholic Daily Mass - Daily TV Mass - December 22, 2023

Training Vlog: Day 45 of Year 3 of Operation Great Reset - Build Back Be...

Now, let us delve into the tenets of the Fifth Industrial Revolution (5IR). The 5IR, which can be said to have begun from the year 2020, is almost utopian in its conceptualization. It aims to foster harmonious and synergistic collaboration between humans and machines (humans and machines dancing together!). So I go outside, and the concrete guys seem to be done with the sidewalk, but it is still a dusty, grimy mess out there in the parking lot because of all the construction work, but I muscled through all of it and tried to get some decent wheelchair roadwork in anyway. So it wasn't the greatest day of training but probably my best roadwork training performance in the last few weeks. I started off very weak but got stronger as time went on.

Catholic Daily Mass - Daily TV Mass - December 21, 2023

HOLY ROSARY FROM LOURDES - 2023-12-21

Training Vlog: Day 44 of Year 3 of Operation Great Reset - Build Back Be...

Another horrible day of training. I really feel like I'm just muscling through a low-energy, depressing, weakened slump right now. Dealing with a lot of fatigue and shoulder soreness and other health and personal issues at the moment, so I'm trying to train smart, scale back a bit and go easy, so I don't get sick or injure myself.

Catholic Daily Mass - Daily TV Mass - December 20, 2023

Rosary from Lourdes - 20/12/2023

Catholic Daily Mass - Daily TV Mass - December 19, 2023

Rosary from Lourdes - 19/12/2023

HOLY ROSARY FROM LOURDES - 2023-12-18

Catholic Daily Mass - Daily TV Mass - December 18, 2023

Rosary from Lourdes - 17/12/2023

Catholic Daily Mass - Daily TV Mass - December 17, 2023

Accounting: The Language of Business - Vol. 2 (Intermediate: Part 118)

“You don’t build a business, you build the people, then people build the business.”
— Zig Ziglar

Revenue Recognition (Part E)

by

Charles Lamson

Step 3: Determine the Transaction Price

Recall from Exhibit 8.1 from Part 114 and reintroduced below, the five steps in revenue recognition. The next few parts in this analysis will discuss Step 3.

The third step in the revenue recognition process is to determine the transaction price. The transaction price is the amount of consideration that the entity expects to be entitled to as a result of providing goods or services to the customer. The transaction price is not necessarily the price stated in the contract—rather, it is the amount the seller expects to receive. The transaction price does not include amounts collected that will be remitted to third parties (such as sales tax).

The transaction price is the amount that an entity will ultimately recognize as revenue. Measuring the transaction price can be quite simple in some cases. For example, assume a customer shopping at a retail store selects and pays $100 cash for a new dress. The transaction price is $100. However, with complex transactions, determining the transaction price is involved. Sellers consider the effects of a number of different factors when determining the transaction price, including:

1. Variable consideration and constraining estimates of variable consideration

2. Any significant financing component in the contract

3. Noncash consideration

4. Consideration payable to a customer

 We discuss each of these factors in the following sections.

Variable Consideration and Constraining Estimates of Variable Consideration

Variable consideration is when the payment received for providing a good or service is not a fixed amount. The amount of consideration may vary from a fixed amount due to price concessions, performance bonuses or penalties, discounts, refunds, rebates, and incentives. Elements of variable consideration may be stated explicitly or implicitly in the contract. For example, a discount for early payment typically offered by a seller is considered an element of variable consideration, even though it may not be specified explicitly in the contract.

If variable consideration is included in the contract, then the entity must estimate the consideration that it expects to receive using one of two acceptable approaches: the expected-value approach (discussed below) or the most-likely-amount approach (discussed in Part 119). The entity should use the approach that provides the best estimate of the amount of consideration it will receive.

Expected-Value Approach. To compute the expected transaction amount under the expected-value approach, the entity sums the probability-weighted amounts in a range of possible consideration amounts. This method is best suited when the entity has a large number of contracts with similar characteristics. This approach is Illustrated in Example 8.6. 

*GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 381-382*

end

HOLY ROSARY FROM LOURDES - 2023-12-16

Catholic Daily Mass - Daily TV Mass - December 16, 2023

Fri, Dec 15 - Holy Catholic Mass from the National Shrine of The Divine ...

Rosary from Lourdes - 15/12/2023

Training Vlog: Day 39 of Year 3 of Operation Great Reset - Build Back Be...

The Fifth Industrial Revolution, or the Cognitive Age, is a transformational point in human history, poised to redefine the very fabric of society and human existence. As we stand on the brink of this new era, the harmonization of human and machine intelligence emerges as the imperative for the advancement of humanity. In this transformative context, the words of René Descartes, "As you think, so you become," take on a new resonance. They remind us that the cognitive shift we are experiencing is not just external but internal, shaping not only our innovations but our very being. As we navigate this cognitive revolution, the opportunity at hand is to become the architects of a future where technology and humanity are not just coexistent but coevolutionary. Was not a very good day of training. Some concrete guys are out there trying to put in a new sidewalk and I'm feeling somewhat weak and my shoulders are sore and because of all the construction work going on out there, it is like trying to do wheelchair roadwork through a construction site and there was like fine dust and silt from all the construction all over the parking lot so it was a hard to get a good grip on my tires. Everything sucked but I did it anyway.

Virgin Mary Healing All the Damage of the Body, the Soul and the Spirit ...

Pray with the Holy Spirit at 432 Hz - Remove All Difficulties, Spiritual...

Rosary from Lourdes - 14/12/2023

Catholic Daily Mass - Daily TV Mass - December 14, 2023

Rosary from Lourdes - 13/12/2023

Catholic Daily Mass - Daily TV Mass - December 13, 2023

Accounting: The Language of Business - Vol. 2 (Intermediate: Part 117)

“Find a great mentor, someone who has already been through the many challenges of being an entrepreneur...”
— Jodi Levine

 Revenue Recognition (Part D)

by

Charles Lamson

Step 2: Identify the Performance Obligations in the Contract

Recall from Exhibit 8.1 in Part 114 and reintroduced below that in order to accomplish the objectives of revenue recognition, companies must follow five steps. This post discusses Step 2.

A seller needs to identify the various performance obligations in a contract to allocate the transaction price to these different performance obligations and to recognize revenue when or as it satisfies each individual one. Conceptually, a performance obligation is a promise to transfer a good or service that is distinct. As shown in Exhibit 8.3, a performance obligation is either:

• A promise to transfer a good or service, or bundle of goods or services, that is distinct, or

• A promise to transfer a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer (A series of goods or services that have the same pattern of transfer if the performance obligation is satisfied over time per FASB ASC 606-10-25-27 and the same method would be used to measure the entity's progress toward satisfaction of the performance obligation according to paragraphs 31 and 32 of FASB ASC 606-10-25. See paragraphs 14 and 15 of FASB ASC 606-10-25 for a discussion of the identification of performance obligations.)

The determination of performance obligations starts with identifying the promised goods and services. After identifying the goods or services in the contract, the seller must determine which goods and services are distinct. The notion of distinct goods and services is critical to determining separate performance obligations. To be distinct, a good or service must meet two conditions:

1. The customer can benefit from the good or service on its own or in conjunction with other readily available resources to the customer, and

2. The promise of the seller to deliver that good or service is separately identifiable from other promises in the contract.

It is often clear that a customer can benefit from the product or service on its own (or in conjunction with other assets). At other times, this determination requires more judgment. If the good or service can be used, consumed, or sold for a nontrivial amount, then it passes the test of being distinct. A good or service is also distinct if the customer can benefit from it in conjunction with other readily available resources. Another resource is considered to be a readily available resource if it is sold separately by the seller or another entity, or if the customer already has obtained it from the seller or in some other transaction. For example, consider a set of earbuds packaged with a mobile phone. Because the earbuds can be sold separately and can be used with other electronic devices, the earbuds are a readily available resource.

A promise to deliver a good or service is separately identifiable if it is not highly dependent or interrelated to another promise in the contract to deliver another good or service. Judgment may be involved in the determination of whether the promise to deliver the good or service is separate from other promises. For example, consider a lawn care company that mows the lawn and then blows clippings off the sidewalk and driveway. Blowing the clipping is highly dependent on having the lawn mowed. Without mowing the lawn, there would be no clippings to blow away. So, blowing the clippings is not separately identifiable from the promise to mow the lawn.

At times a seller may provide a “ free” good or service with the contract, such as in the telecommunications industry where entities offer free mobile phones with a service agreement. These goods and services should be considered as possible performance obligations even though they are identified in the contract as being free of charge.

Also, the promised good or service does not have to be explicitly identified in the contract. If the customer has a valid expectation that the seller will provide the good or service, then this item should also be assessed as a possible performance obligation.

An entity should aggregate the goods or services promised in a contract until it identifies a bundle of goods or services that is distinct and thus defined as a separate performance obligation. There may be only one performance obligation identifiable in a contract. Example 8.4 illustrates how to identify separate performance obligations.

 Modification of this contract will result in a different outcome as seen an example 8.5.

*GORDON, RAEDY, SANNELLA, 2019, INTERMEDIATE ACCOUNTING, 2ND ED., PP. 379-381*

end