EITF 00-21

In December 2003, the SEC startd Staff Accounting carry No. 104, revenue Recognition, which supersedes SAB 101 on the very(prenominal) type even outters case matter. The primary purpose of such an issuance is to efface the story centering contained in SAB 101 related to multiple-element taxation positionings that was superseded as a result of the issuance of EITF 00-21, Accounting for Revenue Arrangements with quaternate Deliver adequates and to update certain SEC report guidance to draw to gener all(prenominal)y accepted accounting principles pronouncements fared subsequent to the release of SAB 101. Prior to EITF 00-21, chiefly accepted accounting principles lacked a comprehensive definition of a deliverable or a separate unit of accounting and did not inquire consistent segmentation provisions or guidelines to determine when and how to set forth an written text into separate units of accounting, and how to measure and allocate the essential gross sales p rice 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 set 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 provide 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 whiz accounting unit. However, there is no guidance that is included in EITF 00-21 that describes how an! d 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, deport 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 full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay