1. Controversy over Revenue Recognition
Groupon story
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Defining revenue recognition
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Who cares about revenue recognition?
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Traditional revenue recognition criteria
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2. Timing of Revenue Recognition
Story of two brothers on a consulting project
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Before cash collection
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At the same time as cash collection
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After cash collection
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3. Complication of Multiple Element Transactions
Buying an iPhone
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Satisfying contractual obligations to customers
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Valuing the components
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Recognizing revenue
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The practical impact
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4. Controversial History of Revenue Recognition Accounting Standards
Story of SAB 101
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Old accounting standards in a complex business world
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5. Revenue Recognition and Valuation of Start-Ups
The MicroStrategy story
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Using price-to-sales ratios
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Valuing a Chinese state-owned telecom company
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6. Famous Frauds and Scandals
Story of ZZZZ Best
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Channel stuffing, brick shipping, and lying
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Glossary_RunningProfitableBusiness_Revenue.zip
(100 KB)