DRAFT ONLY

ACCOUNTING POLICIES AND Process I.D. Supersedes No.

PROCEDURES MANUAL  

FINANCIAL GUIDELINES AND CONTROL -

REVENUES  Effective Date
BETHLEHEM HOLDINGS, INC. Process: Billing and Recording of
Revenues Page 1 of 3

I. OBJECTIVE

1. To provide guidelines for the recognition of revenues.

2. To ensure that revenue records are complete and adequate.

II. DEFINITION/SCOPE

Revenue is the gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary
operating activities of an enterprise.

III. POLICY STATEMENTS

1. Recognition

Revenue is recognized when all of the following criteria have been satisfied:

a. the Company has transferred to the buyer the significant risks and rewards of ownership;

b. the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods or services sold;

c. the amount of revenue can be measured reliably;

d. it is probable that the economic benefits associated with the transaction will flow to the Company;
and

e. the costs incurred or to be incurred with respect to the transaction can be measured reliably.

An exchange for goods or services of a similar nature and value is not regarded as a transaction that
generates revenue. However, exchanges for dissimilar items are regarded as generating revenue.

2. Measurement

Revenue is measured at the fair value of the consideration received, excluding discounts, losses (system
downtime), rebates, and other sales taxes or duties.

3. Billing Policies

a. Billing is based on reports to be generated by the Company’s Conditional Access System or

CAS., reconciled with the Client’s records.

b. The CAS reports must be compared and reconciled with the relevant reports of the client(s).
Any discrepancies must be promptly investigated and resolved.

c. The Sales/Service Invoice and supporting schedules and documents must be sent to clients five
(5) days after the billing cut-off date..

II. ORGANIZATIONAL RESPONSIBILITIES AND PROCEDURES

Responsible Person Procedure

Prepared by: Reviewed by: Approved by:

 DRAFT ONLY

ACCOUNTING POLICIES AND Process I.D. Supersedes No.

PROCEDURES MANUAL  

FINANCIAL GUIDELINES AND CONTROL -

REVENUES  Effective Date
BETHLEHEM HOLDINGS, INC. Process: Billing and Recording of
Revenues Page 2 of 3

Accounting Assistant I 1. Receives from the “Conditional Access System” or “CAS”

personnel the reports required to prepare the billings to the
customers/clients.

a. Report on Number of Subscriptions (Format still to be

created)
b. CAS access/activity report (format still to be created))

2. Receives reports/summaries for similar transactions from the

customers/clients.

3. Reconciles the CAS reports and the customer/client reports.

a. Prepares a reconciliation statement for each

customer/client (the format for GL/SL Reconciliation
may be used).
b. If any differences are noted, contacts customers/clients;
refers any matters that they cannot agree on to the
Accounting Manager, and, if needed, to the Head-
Finance and Admin. for appropriate action.

Accounting Manager 4. Reviews and approves the reconciliation statements.

Accounting Assistant I 5. Prepares a “Sales/Service Invoice” or “SI” (Form No. 01)

indicating charges for the following:

a. Based on the contract, the monthly block air-time rental

fees;
b. Based on the contract, the amount of the Company’s share
in the subscription fees for the period.
c. Attaches any supporting computation for the share of
subscription fees.

Accounting Manager 6. Reviews and pre-approves the SI.

Head – Finance & Admin. 7. Approves the SI.

Accounting Assistant I 8. Distribution of SI:

Original and attachments – sent to the customer on or

before the 5th day of the following month.
Duplicate – filed numerically

9. Records the SI in the “Sales Register” or “SR” (Exhibit No.

01).

10. Updates the Accounts Receivable – Trade Subsidiary Ledgers

(Exhibit No. 05).

11. At the end of the month, prepares a summary of accounting

entries for the SR.

Accounting Manager 12. Reviews and approves the SR summary of entries.

Prepared by: Reviewed by: Approved by:

 DRAFT ONLY

ACCOUNTING POLICIES AND Process I.D. Supersedes No.

PROCEDURES MANUAL  

FINANCIAL GUIDELINES AND CONTROL -

REVENUES  Effective Date
BETHLEHEM HOLDINGS, INC. Process: Billing and Recording of
Revenues Page 3 of 3

13. Posts the entries to the “General Ledger” or “GL” (Exhibit

No. 07).

Accounting Assistant I 14. Prepares a reconciliation statement for AR-Trade Subsidiary

Ledgers and related GL control account (Exhibit No. 08).

15. Prepares an Aging Schedule of Accounts Receivable – Trade

(Exhibit No. 09).

16. If any adjustment to the GL is needed, prepares a “Journal

Voucher” or “JV” (Form No. 03) in two copies.

Accounting Manager 17. Reviews and approves the Reconciliation Statement, the AR-
Trade Aging Schedule, and the JV.

18. Posts the JV for adjustments to the GL.

Prepared by: Reviewed by: Approved by: