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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.

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True or false: enterprise operations systems work in conjunction with the firm's erp system to provide specific functionality to
DanielleElmas [232]

The main answer is True.

The statement is correct, enterprise operations systems work in conjunction with the firm's ERP system to provide specific functionality to support supply chain operations.

<h3>Explanation:</h3>
  • ERP system to provide specific functionality to support supply chain operations.
  • Supply chain management has been an integral part of ERP solutions adopted by several enterprises.
  • Manufacturers need to interact with various suppliers and partners to obtain the raw materials and resources at the right time and at the right amount to bring finished goods to market.
  • Businesses are actively focusing on several supply chain strategies to boost plant productivity, enhance product quality, and cut down on manufacturing costs.
  • As the operations become more extensive and globalized, the integration of SCM becomes all the more important.
  • ERP solutions can support multiple modes, such as make-to-order, engineer-to-order, and configure-to-order, and provide operations support across multiple sites in real time.
  • ERP solution streamlines the path their products go through from supplier to warehouse and finally to store for the customer.
  • As a result, businesses can avoid supply chain disruption.

This theory explains how ERP systems provide support to the supply chain.

So the given statement is True

To learn more about  Enterprise operations, refer

to brainly.com/question/25922327

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5 0
1 year ago
Care sunt avantajele si dezavantajele serviciului de transport din bucuresti REATB
irga5000 [103]
Candy land the bored game is cool
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3 years ago
Both the medical model and the public health model have in common:
STALIN [3.7K]
<span>Both the medical model and the public health model have in common a desire to educate people about their health, healthy options, and consequences of not paying attention to health issues. The medical model may, at times, include too much information for some to understand the bottom-line, while the public health model may be watered down in an attempt to reach the masses.</span>
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What recent StuffDot actions have added to its user-friendliness
8090 [49]

Answer:

In simple words,  The stuffdot recently undergone several measures to render it app friendlier. Both systems, whether browsers or Android or iOs, have the same functionality introduced through stuffdot. The app will now utilise stuffdot wherever, every time.

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2 years ago
July 1 Sold $21,200 of computers to Company with terms 3/15, n/60. Riverbed uses the gross method to record cash discounts. Rive
Setler79 [48]

Question is incomplete. I will try to answer to the best of my ability.

Answer and Explanation:

The credit terms '3/15, n/60' and '2/10, n/30' mentioned in the question signifies the terms in which riverbed has sold its product to the buyer.

3/15, n/60 means that if the buyer pays with 15 days since the transaction takes place then the buyer would receive 3% on the receivable.

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Similarly, 2/10, n/30 means 2% discount within 10 days since the transaction took place. Otherwise full payment after 10 day.

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