Revenue Recognition Blog

Ali Almohashi, MSA, CMA

Accountant-lifelong learning solves business and compliance requirements challenges

Recent Posts

Three ways to identify IFRS 15 and ASC 606 variable considerations

[fa icon="calendar'] Jul 31, 2017 8:43:52 AM / by Ali Almohashi, MSA, CMA posted in Revenue Recognition, ASC 606, IFRS 15, Variable Consideration

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IFRS 15 and ASC 606 provide a five-step model for recognizing revenue. Step 3 requires that at the beginning of the contract, and at each reporting period, the entity has to determine the amount of consideration to be entitled to.

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Internal Controls with The New Revenue Recognition Standard

[fa icon="calendar'] Jun 2, 2017 3:03:21 PM / by Ali Almohashi, MSA, CMA posted in Internal Controls

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company Golden Bear Golf Inc. is named after legendary golfer Jack Nicklaus. Its fully owned subsidiary is Paragon, which builds golf courses. Paragon executives Boyd and Curbello artificially increased revenue. They conducted fraudulent schemes to manipulate revenue by accelerating project progress, inflating expected revenue, creating fictitious contracts, and not recording unexpected project losses. Boyd and Curbello even started accepting a loss contract where the cost of the contract was higher than the price charged. Then, they did not record losses associated with these contracts. This scheme overstated Paragon revenue by more than $25 million.

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