If a motion picture company wanted to find specific guidance on how to recognize revenue related to its film licensing rights, would it find more specific industry guidance under U.S. GAAP or IFRS? Explain your answer.
Answer to relevant QuestionsIf a company has numerous long-term construction contracts for which it cannot reliably estimate the costs to complete, would it recognize more or less revenue under IFRS relative to U.S. GAAP? Why?Wells Corporation uses the percentage-of-completion method of accounting for construction costs. For Construction Project A, Wells had previously recognized revenue of $250,000 out of a total of $800,000 for the project. ...In 2010, Tarlo Company agrees to construct a highway for Brice County over a three-year period (2010 through 2012). The contract price is $1,200,000 and the construction costs (both actual and estimated) total $705,000 for ...On January 1, 2010 the Hogback Company sold the Red Rocks Ranch, which constituted 20,000 acres of undeveloped land, to a limited partnership for $50 million. The land had originally cost Hogback $5 million. The terms of the ...Frankfort Company identifies depreciation as the only difference for future taxable amounts. In Year 1, its depreciation for financial reporting purposes is $3,500 and $5,000 for income tax reporting purposes. Frankfort ...
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