GAAP Policies and Procedures, Second Edition

Chapter 5. Revenue Recognition

Definitions of Terms			86
Concepts and Examples			87
	Revenue Recognition Scenarios		88
	Bill and Hold Revenue Transactions		89
	Recording Revenues at Gross or Net		89
	Reducing Revenue by Cash Paid to Customers		90
	Long-Term Construction Contracts		91
	Service Revenues		93
	Recognition of Losses on Service Contracts		94
	Recording Initiation Fees as Service Revenue		95
	Recording Out-of-Pocket Expense Reimbursements		95
	Sales When Collection Is Uncertain		95
	Repossession of Goods under Installment Sales		97
	Revenue Recognition When Right of Return Exists		97
	Revenue Recognition for Multiple Deliverables		98
	Franchise Sales		99
	Motion Picture Revenues		100
Decision Trees			100
	Recording Revenues at Gross or Net		100
	Recording Service Revenues		101
Policies			102
	Revenue—General		102
	Barter Revenues		103
	Long-Term Construction Contracts		103
	Sales When Collection Is Uncertain		103
	Revenue Recognition When Right of Return Exists		104
	Franchising Revenues		104
Procedures			104
	Issue a Customer Credit Rating		104
	Process a Shipment		105
	Create an Invoice		105
	Compare Billings to the Shipping Log		106
	Review Pricing Errors		107
	Process Bill and Hold Transactions		107
	Process Sales Returns		108
	Collect Overdue Accounts		109
	Long-Term Construction Contracts—Percentage-of-Completion Calculation		109
	Service Revenues—Advance Recognition of Losses		110
	Sales When Collection Is Uncertain—Goods Repossession		110
	Revenue Recognition When Right of Return Exists		111
Controls			111
	General		111
	Barter Revenues		113
	Cash Payments to Customers		114
	Recording Revenues at ...