BUS 320 Lecture Notes - Lecture 4: Fixed Price, Consignee, Securities Regulation In The United States

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Maureen Fizzel

Document Summary

Inflow of economic benefits (cash, receivables, or other consideration) arising from ordinary (day-to-day) activities. Cash-to-cash cycle: realized when goods and services are exchanged for cash. Increase in economic benefits during the accounting period in the form of inflows. Increase in assets and decrease in liabilities result in increase in equity. Fob shipping point title passes at the point of shipment. Fob destination title passes when the asset reaches the customer. Securities law set parameters on the funding behind the deal. Constructive obligation: often enforceable under common or other law o. Focus on the earnings process and how a company adds value for its customers. Currently in place under aspe and ifrs. Revenue for sales of goods and related costs are recognized when: o o. The risks and rewards of ownership are transferred to the customer. The vendor has no continuing involvement in the goods sold o o. Recognize revenue when the rights and obligations change.