Good accounting

Justin Denman Accounting and Auditing Processes March 4, 2000 Writing Assignment #1 tax revenue Recognition Policies The purpose of this paper is to compargon the revenue recognition policies of 2 companies in the search, detection, navigation, guidance, and aeronautical systems industry. The 2 companies I have selected argon Aerosonic Corporation, and Esco Electronics Company. Esco Electronics Company is engaged in the design, manufacture, deal and support of engineered products. These products be used principally in filteration/ eloquent attend applications, electromagnetic compatibility (EMC) testing, and electric utility communications and suss out systems. The filtration/fluid flow and EMC testing products argon supplied to a encompassing base of industrial and commercial customers worldwide. At the present time, electric utility communications systems are marketed primarily to customers in sexual union America. The four primary industry segments of Esco are Filtra tion/Fluid Flow, Test, Communications, and other. In purify for Esco to conform with generally accepted accounting principles, management must(prenominal) make careful estimates in preparing the financial statements. These estimates are for look to contract make ups and revenues earned during the life of the contract. These amounts affect the calculate amounts of assets and liabilities on the companys financial statements. Actual results could differ from these numbers. Revenues are recognize on commercial sales when products are shipped or when go are performed.

Revenue on production contracts are prolong when specific contract terms are fulfilled.! These amounts are unyielding either by the units of production or delivery orders. Revenues from bell reimbursement contracts are recorded as costs are incurred, summation fees earned. Revenue under long-term contracts in which the previous two methods are inappropriate, the percentage-of-completion method is used. Revenue under engineering contracts are generally recognized as certain milestones are attained. The percentage-of-completion method recognizes a portion of the estimated gross profit for each enlistment based on progress to date. Progress to... If you want to dickhead off a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper