repare a memo to the board summarizing the goals and requirements of the new revenue recognition standard ASC 606. Be sure to address the key criteria that FASB focused on as to when revenue should be recognized. Include in your memo to the board summaries of the various revenue and earnings manipulations that Sunbeam Corporation committed in the late 1990’s.
In the late 1990's, Sunbeam Corporation faced financial woes and attempted various strategies to boost its reported earnings. In 1997, three strategies appeared to be working; revenues had risen by 18%. However, by April 1998 Sunbeam’s stock was downgraded by investment analysts after noticing unusually high
You are the controller for a company that is considering becoming publicly-traded in the next few years, and the board of directors wants to be sure the company is properly following GAAP in regards to revenue recognition. They have heard that there is a new accounting standard in place for revenue recognition that they want to comply with, but they also want to be sure that the company does not repeat the errors that Sunbeam and other companies have made.
- Prepare a memo to the board summarizing the goals and requirements of the new revenue recognition standard ASC 606. Be sure to address the key criteria that FASB focused on as to when revenue should be recognized.
- Include in your memo to the board summaries of the various revenue and earnings manipulations that Sunbeam Corporation committed in the late 1990’s.
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