1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dem82 [27]
2 years ago
12

Mars, Inc. follows IFRS for its external financial reporting, while Jerome Company uses GAAP for its external financial reportin

g. During the year ended December 31, 2021, both companies changed from using the completed-contract method of revenue recognition for long-term construction contracts to the percentage-of-completion method. Both companies experienced an indirect effect, related to increased profit-sharing payments in 2021, of $30,000. As a result of this change, how much expense related to the profit-sharing payment must be recognized by each company on the income statement for the year ended December 31, 2021
Business
1 answer:
Nadya [2.5K]2 years ago
6 0

Answer:

Mars, Inc (IFRS) and Jerome Company (GAAP) for External Reporting

Change from completed-contract method of revenue recognition for long-term construction contracts to the percentage-of-completion method.

                                               Mars, Inc    Jerome Company

Expenses to be recognized        $0                $30,000

Explanation:

GAAP and IFRS previously recognized two methods for accounting for long-term construction contracts: the completed contract method and the percentage of completion method.  GAAP allowed for an adjustment to be made to the income as a result of a change in method for unrecognized expenses in the previous period, whereas IFRS did not allow such an adjustment.  However, the harmonized revenue standards under GAAP ASC 606 and IFRS 15 now stress the performance obligations that have been met under any contract as the standard criteria to measure revenue recognition.

You might be interested in
Kiara filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of
maria [59]

Answer: The illustration must show that the policy owner (Kiara)<em> </em><em>may need to resume paying the premium payments depending on actual results. </em>

The policy owner will need to determine if this is the right policy for her and her family. The illustration should be truthful about how the policy will perform for the buyers lifetime. The illustration should also show the financial projections for each year so the buyer can determine if the plan fits their budget.

7 0
3 years ago
Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $12,300
Tom [10]

Answer:

$120,500

Explanation:

Uchimura Corporation

Total Company

Divisional segment margin $132,800

($84,100 + $48,700)

Less common fixed costs not traceable to the individual divisions X

Net operating income $ 12,300

Hence:

Common fixed costs not traceable to the individual divisions= $132,800 − $12,300

= $120,500

Therefore the amount of the common fixed expense not traceable to the individual divisions will be $120,500

3 0
3 years ago
(consider this) consumers might leave a fast-food restaurant without being served because:
Liula [17]
The reason why consumers leave without being served because the consumers must have felt mad or upset about the service being served to them-- causing them to leave their orders or to even wait for their time for their turn of having to get their menu taken.
4 0
3 years ago
Why does a country need to have a comparative advantage in a particular product in order to engage in trade with another country
harkovskaia [24]

Answer:

Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers.

5 0
2 years ago
What's the idea behind bitcoin and its exchange rates ? ​
Brums [2.3K]

Answer:

Explanation:

https://www.bitcoinsxchanger.com/zcash-to-webmoney.php  

Zcash to webmoney exchange digital coin for free is one of the best part of this site. Exchange your zcash and get big profit. We have millions of people that are exchanging their crypto coins with world's largest exchange market. Visit for more.

5 0
3 years ago
Other questions:
  • Determine whether the results appear to have statistical​ significance, and also determine whether the results appear to have pr
    15·1 answer
  • Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Acc
    12·2 answers
  • It is calculated that the workstation cycle time is 80 seconds. The theoretical minimum number of workstations needed is 4 stati
    6·1 answer
  • Characteristics of customer _____ include customer retention and loyalty, customers’ willingness to make an effort to do busines
    9·1 answer
  • On April 1, 2020, Clare Barry received a 5%, $600,000 note from John Edwards, a customer. The note is due on March 31, 2021. Cla
    11·2 answers
  • Which of the following situations demonstrates informational technology
    9·1 answer
  • Ruth Lewis is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.825 percent. If these
    10·1 answer
  • A company has two open seats, Seat A and Seat B, on its board of directors. There are 6 candidates vying for these 2 positions.
    10·1 answer
  • How to develop abusiness mindset​
    15·1 answer
  • I am creating a website but I don't know what it should be about. Any ideas? the more the better&gt;
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!