Chapter 12

Revenues and Receivables

Alan S. Glazer, PhD, CPA

Franklin & Marshall College

Cynthia L. Krom, PhD, CPA

Franklin & Marshall College

Henry R. Jaenicke, PhD, CPA

Late of Drexel University

12.1 Nature and Measurement of Revenue

(a) Definition and Components of Revenue

(b) Classification of Revenue

(c) Measurement, Earning, Realization, and Recognition of Revenue

(i) Measurement of Revenue

(ii) Earning of Revenue

(iii) Revenue Realization and Recognition

(d) Revenue Recognition Alternatives

(i) Delivery

(ii) Recognition Before Delivery

(iii) Recognition After Delivery

12.2 Nature and Significance of Receivables

(a) Receivables Defined

(b) Types of Accounts Receivable

(c) Types of Notes Receivable

(d) Credit Card Receivables

12.3 Criteria for Recognizing Revenue

(a) General Criteria

(b) Attributes Measured by Entry and Exit Values

(c) Financial Accounting Standards Board Conceptual Framework and Revenue Recognition

(d) Specific Recognition Criteria

(e) Characteristics of the Revenue Event or Transaction

(i) Nonreversibility

(ii) Transfer of the Risks and Rewards of Ownership

(iii) Recognition Based on Events

(f) Characteristics of the Asset Received

(i) Asset Liquidity

(ii) Absence of Obligations and Restrictions

(iii) Asset Collectibility

(iv) Asset Measurability

(g) Characteristics of the Revenue Recognized

(h) Securities and Exchange Commission Staff's Views on Recognizing Revenues

(i) Persuasive Evidence of an Arrangement

(ii) Delivery and Performance

(iii) Fixed or Determinable ...

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