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Revenue Recognition for a Services Contract

Pratibha Wasan; David J. Sharp;

商品編號:9B15B005
出版日期:2015/07/10
再版日期:2015/07/10
商品來源:Ivey
商品主題:Accounting; International Business
商品類型:Case (Field)
涵蓋議題:GAAP;facility management;service sale
難易度:5 - MBA/Postgraduate
內容長度:13 頁
地域:India
產業:Information; Media &; Telecommunications;
事件年度:2012

On November 25, 2012, the head of Revenue Recognition at ESol Limited (ESol) India was preparing for a meeting with the company’s sales team at the head office in Bangalore. ESol Limited was a large, U.S.-based multinational information technology corporation, which had moved into India in 2000. Since then, its management had insisted on the need for close monitoring of accounting procedures in strict adherence to Generally Accepted Accounting Principles. Although the sales team had negotiated the Request for Proposal with MoveForward, a large research firm in India handling and processing high volumes of sensitive data, in good faith, the revenue recognition team felt that clauses dealing with penalties, liquidated damages and termination put their company at risk and wished to defer all of the revenue proposed for the contract until these issues were resolved. The friction between the two teams put the entire deal in jeopardy.

教學手冊:8B15B005;
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