Please solve this question in detail and please provide atleast 1 refrence Question : A company believes that it is subject to scrutiny by particular interest groups such as employee unions because it is earning excessive profits. Do you think that this might influence whether the company prefers to recognise revenue over time for its construction contracts, or whether it would prefer to defer profit recognition until the completion of the project? Using this case, discuss whether it be appropriate to recognise revenue at completion of production rather than at the point of sale? (word limit 500)
Please solve this question in detail and please provide atleast 1 refrence Question : A company believes that it is subject to scrutiny by particular interest groups such as employee unions because it is earning excessive profits. Do you think that this might influence whether the company prefers to recognise revenue over time for its construction contracts, or whether it would prefer to defer profit recognition until the completion of the project? Using this case, discuss whether it be appropriate to recognise revenue at completion of production rather than at the point of sale? (word limit 500)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please solve this question in detail and please provide atleast 1 refrence
Question : A company believes that it is subject to scrutiny by particular interest groups such as employee unions because it is earning excessive profits.
Do you think that this might influence whether the company prefers to recognise revenue over time for its construction contracts, or whether it would prefer to defer profit recognition until the completion of the project?
Using this case, discuss whether it be appropriate to recognise revenue at completion of production rather than at the point of sale? (word limit 500)
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