Continuing Research Project – Revenue Recognition
Introduction and Purpose of Assignment
The continuing research project in this course will examine the underlying theory, market application, and ethical implications of the various accounting practices that you are working with each week. Week Two will focus on revenue recognition.
Examine revenue recognition and its potential impact on a company’s financial position and reputation. (2.2)
Theory and Context
Revenue recognition is recognized as the number one reason that company’s restate financial statements. A restatement of a financial is expensive and can negatively impact a company’s reputation – indicating just how much of a problem revenue recognition poses.
- In a 2-3 page paper summarize the concept of revenue recognition.
- Identify the errors and abuses that are most common regarding revenue recognition.
- Evaluate the possible ethical issues involved in revenue recognition.
- Provide a recommended ethical approach to appropriately recognizing revenue.
- APA formatting is required for this paper.
- A minimum of two references is required.
- Use the Paper Writing Rubric below to ensure you have met all the criteria for this assignment.