CPA Explains Revenue Recognition Under GAAP Rule | With Examples
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- Опубликовано: 12 мар 2021
- Revenue recognition is figuring out when a business has actually earned its revenue. With the keyword being “earned” because it’s all about earning the revenue you record when it comes to revenue recognition rules.
Knowing when to recognize revenue is one of the reasons why we have Generally Accepted Accounting Principles (GAAP). GAAP has detailed rules for when and how to recognize revenue, and how to report it on your income statements. The most recent of these rules is ASC 606 or Accounting Standard Codification 606.
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Thanks for the video. I think it will be great if you open a podcast, Its great to ear you when I am in the traffic.
Interesting idea! I will consider it :)
Omg great idea! Hell he could just take the audio from the show and barely behave to tweak it!
Such an informative and illustrative video. You made dull principles easy to absorb. Love the home tour (Magnificent house btw). The solar panel installation reminds me of our company's revenue recognition principles: The equipment has to be delivered, installed, and signed by customers and field service technicians before we can recognize the revenue in relation to it :)
Hey Coco, you are right on the solar panels as good example of Rev Rec rules lol
Great videos! They help supplement my CPA study materials. Requesting videos on Leases and Derivatives!
Glad you liked it
Wow that is something really interesting to know about Tesla Solar panels in much more in detail. Waiting for a whole video dedicated to this.
You and me both! :)
Question: if there are implementation fees that the wine company incorporated, when would you start recognizing revenue on those fees? When it’s completed/up and running or when the implementation process has started
I think the illustrated case of FOB at destination is applicable when the shipping and handling is a distinctive performance obligation
Yes, good video. Hopefully you will go through all the Gaap principles.
Will do :) 🙏
Thank you for the great content!
Nice explanation, what if the FOB destination for sea cargo? If documents sent at shipment including a commercial invoice, unearned revenue account instead sales account to use?
A fan of your channel. Support.
Great video !!!
Thanks vlad!
Hello, thanks for yet another great video. Requesting if you could make a video about fixed assets.
Thank you
Ok good idea
Thank u so much for this video it helped me a lot to understood about rev rec rules
Thank u so much again. all cleared in one example😇
Glad it helped
I am happy for you for the solar. u r smart man. congratulations
Thank you so much 😀
Hey mate I have a doubt....after CPA or CA if we are in audit field we start as a associate,manager,partner & we can also become cfo..in the field of taxation what is the highest position???
Partner at a public firm or if private, VP of taxation
Explain input and output method of measuring performance obligation of revenue recognition
Great video, also could you make a video explaining the TelexFree or Operation Car Wash?
Interesting ideas, ok I will try
Sorry I have a question in Canadá use GAAP?
Really awesome video. Request you to explain about ASC 340.....
Sure will do
@@TheFinancialController Thx
I love the video, what program do you use to create this video with all those animations
Toonly, basic version
I enjoy your videos. Do you touch on nonprofits?
Hi no not super familiar with non profit
Just want to say i Recognize you as my hero.
Ah 😎you have very highly expectations of me 👀
Dude ur a beast
Can you make a video about earnings quality?
Sure
Hope these tesla panels help us and you to create interesting videos when you have no actual electricity. :)
I hope so too!
Character In the video It's great, I like it a lot $$
Sir I start a business so CPA are use ful me
Ok congrats on the business
What if the revenue is never received and it is an annual service contract you cannot recover? What happens to the deferred revenue? You cannot un-earn revenue recognized? Does this become an expense now? Do you owe this subscriber even he has not paid you anything?
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I sent you a message on IG can you read it ?
No I don’t see it. I assume IG means Instagram
@@TheFinancialController yes it is
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Saya tidak percaya ia boleh menjadi sebaik ini