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Intermediate Accounting Volume 1 Canadian 12th Edition Kieso Solutions Manual
Intermediate Accounting Volume 1 Canadian 12th Edition Kieso Solutions Manual
CHAPTER 6
Revenue Recognition
Learning Objectives
1. Understand the economics and legalities of selling
transactions from a business perspective.
2. Identify the five steps in the revenue recognition process.
3. Identify the contract with customers.
4. Identify the separate performance obligations in the contract.
5. Determine the transaction price.
6. Allocate the transaction price to the separate performance
obligations.
7. Understand how to recognize revenue when the company
satisfies its performance obligation.
8. Analyze and determine whether a company has earned
revenues under the earnings approach.
9. Identify other revenue recognition issues.
10. Describe presentation and disclosure regarding revenue
11. Identify differences in accounting between IFRS and ASPE
and potential changes.
12. Apply the percentage-of-completion method for long-term
contracts.
13. Apply the zero-profit method for long-term contracts.
14. Apply the completed-contract method for long-term contracts.
15. Account for losses on long-term contracts.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Level of Time
Item Description Difficulty (minutes)
E6.1 Economics of transactions – various consumer Moderate 20-25
industries.
E6.2 Service contracts. Moderate 15-20
E6.3 Loyalty programs. Moderate 15-20
E6.4 Warranty arrangement. Simple 10-15
E6.5 Warranties. Simple 10-15
E6.6 Transaction price. Simple 10-15
E6.7 Variable consideration. Simple 10-15
E6.8 Trailing commission. Moderate 15-20
E6.9 Time value of money. Complex 15-20
E6.10 Sales with returns. Moderate 25-30
E6.11 Sales with returns. Moderate 25-30
E6.12 Advance rentals. Moderate 15-20
E6.13 Gift cards sales and redemptions. Moderate 20-25
E6.14 Allocation of transaction price. Complex 25-30
E6.15 Allocation of transaction price. Moderate 30-35
E6.16 Allocation of transaction price. Moderate 25-30
E6.17 Allocation of transaction price. Moderate 25-30
E6.18 Allocation of transaction price. Moderate 10-15
E6.19 Existence of a contract. Moderate 10-15
E6.20 Existence of a contract. Simple 10-15
E6.21 Licensing arrangement. Simple 10-15
E6.22 Revenue recognition under earnings approach - Complex 40-45
various consumer industries.
E6-23 Transactions with customer acceptance under Complex 15-20
earnings approach.
E6.24 Sales with repurchase. Moderate 15-20
E6.25 Repurchase agreement. Simple 10-15
E6.26 Bill-and-hold. Moderate 10-15
E6.27 Principal and agent. Moderate 15-20
E6.28 Consignment sales. Moderate 15-20
E6.29 Consignment sales. Moderate 30-35
E6.30 Contract costs. Moderate 15-20
E6.31 Contract costs, collectibility. Moderate 10-15
E6.32 Recognition of a profit on long-term contracts. Moderate 20-25
E6.33 Gross profit on uncompleted contract. Moderate 10-15
E6.34 Recognition of revenue on long-term contract Moderate 15-20
and entries.
E6.35 Recognition of profit and SFP amounts for long- Moderate 15-20
term contracts.
Level of Time
Item Description Difficulty (minutes)
A child must not be put to the breast, if the mother’s health is very
poor, or if she has any venereal, scrofulous, consumptive taint, or
herpetic disease, St. Anthony’s fire, &c. We have conversed with
females who are subject to the last complaint, and who have
communicated it to their children, which destroyed them all. The
poison is transmitted from the mother to the child. In any of these
cases, the infant must be reared on the nursing bottle. It is best to
use cream instead of milk; the child thrives well upon it, less quantity
answers, and it does not curdle, like milk, upon the stomach.
Atrophy from Suckling.—Some women of a delicate constitution
cannot suckle long without an evident appearance of declining
health; and, if persisted in, it might terminate in a general wasting of
the body and loss of strength, or some morbid affection of the lungs.
When, therefore, a woman finds her health declining, and that she
gets weaker every day with loss of appetite and languor, she ought
immediately to leave off suckling; she should use a generous diet,
with a moderate quantity of wine bitters daily, and, if convenient,
change the air, particularly if an inhabitant of a large and populous
city or town. If the change is not found sufficiently efficacious of
itself, when conjoined with a restorative diet, a course of tonics
should be given. Gentle exercise on horseback or in a carriage will
greatly assist the effect of these remedies.
INFLAMMATION OF THE BREASTS.