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I think I will . You say , something about modifications.and …Im not sure what your saying , but ! “The modification is a critical tool for the servicers , alleged. So is CA CC 2923.5 which is equally oppressive and unjust. One Fed and the other state devisee for recognition purposes.They both act as triggers for “re-cognition ” Yes Neil , under GAAP and provide sufficiency for claims of breach of accounting rules and duties for reporting purposes.For revenue to be recognized, there are two key conditions that must be met according to SFAC 5,Recognition and Measurement in Financial Statements of Business Enterprises. They are:
- Completion of the earnings process
Under this test, the seller must have no significant remaining obligation to the customer. If an order for five hundred football helmets has been placed and only two hundred delivered, the transaction is not complete. Likewise, if the seller is the manufacturer of appliances and promises extensive warranty coverage, it should not book the sale as revenue unless the cost of providing that service (i.e., warranty repair labor and parts) can be reasonably estimated. Additionally, a company that sells a product with an unconditional return policy cannot book the sale until the window has expired (e.g., a company that promises unrestricted returns for cash until ninety days after the sale should not record the revenue until that period has elapsed.)
- Assurance of payment
In order to book revenue, the selling company must be able to reasonably estimate the probability that it will be paid for the order.
Revenue Recognition Method 1: Sales Basis
This is the method that probably makes the most sense to investors. Under the sales basis method, revenue is recognized at the time of sale (defined as the moment when the title of the goods or services is transferred to the buyer.) The sale can be for cash or credit (i.e.,accounts receivable.) This means that revenue is not recognized even if cash is received before the transaction is complete. A magazine publisher, for example, that receives $120 a year for an annual subscription, will only recognize $10 of revenue every month. The reason is simple: if they went out of business, they would have to return a pro-rated portion of the annual subscription price to the customer since it had not yet delivered the merchandise for which it had been paid.
….Brother, how many experts do you have on hand now?