EITF 00-21

In December 2003, the SEC startd Staff Accounting airmanship No. 104, revenue Recognition, which supersedes SAB 101 on the very(prenominal) military let go of matter. The primary purpose of such an issuance is to efface the method of account statement centering contained in SAB 101 related to multiple-element taxation positions that was superseded as a result of the issuance of EITF 00-21, Accounting for Revenue Arrangements with fivefold Deliver fittings and to update certain SEC accounting guidance to adapt to gener all(prenominal)y accepted accounting principles pronouncements issued subsequent to the release of SAB 101. Prior to EITF 00-21, in general accepted accounting principles lacked a comprehensive definition of a deliverable or a separate unit of accounting and did not sham consistent segmentation provisions or guidelines to determine when and how to embed forth an organization into separate units of accounting, and how to measure and allocate the fall gross sales price to the separate units of accounting. To relate this issue to our case, if Manini Manufacturing does not bring in EITF 00-21, they whitethorn be able to upfront account all of the revenues upon satisfaction of all criteria case-hardened out by SAB 101. On the contrary, if Manini Manufacturing fails to meet all criteria for recognizing the revenues, they may have to defer it to the near fiscal year.

SEC supply noted that EITF 00-21 only addresses the issue of whether multiple elements in an arrangement should be accounted for separately, or unneurotic as a champion accounting unit. Howe ver, there is no guidance that is included i! n EITF 00-21 that describes how and when revenues from the entire arrangement should be recognized. SAB 104 addresses the issue by stating that if an arrangement must be accounted for as a single accounting unit, the pattern of revenue information for the entire arrangement generally should mirror the pattern for the remainder item to be delivered. For example, direct that an arrangement provides for the delivery of equipment and alimentation services, and that the arrangement must be accounted for as a single...If you inadequacy to get a ample essay, order it on our website: BestEssayCheap.com

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