EITF 00-21

In December 2003, the SEC startd Staff Accounting railway line No. 104, revenue Recognition, which supersedes SAB 101 on the very(prenominal) payoff matter. The primary purpose of such an issuance is to efface the chronicle centering contained in SAB 101 related to multiple-element taxation positions that was superseded as a result of the issuance of EITF 00-21, Accounting for Revenue Arrangements with treble Deliver adequates and to update certain SEC method of accounting guidance to adapt to gener all(prenominal)y accepted accounting principles pronouncements outd subsequent to the release of SAB 101. Prior to EITF 00-21, principally accepted accounting principles lacked a comprehensive definition of a deliverable or a separate unit of accounting and did not pretend consistent segmentation provisions or guidelines to determine when and how to strict forth an line of battle into separate units of accounting, and how to measure and allocate the agree gross sales price 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 bent grass 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 mental faculty 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 private accounting unit. However, ther e is no guidance that is included in EITF 00! -21 that describes how and 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, copy 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 all-inclusive essay, order it on our website: BestEssayCheap.com

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