Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: WhatsUpWithThat who wrote (67598)	1/26/2000 5:19:00 PM
From: ciVic	Read Replies (3) \| Respond to of 108040

WUWT ok so if you are right.....let's say I'm a ship builder. I get a contract to biuld a ship worth 10M and it will take me 2 years. Are you telling me I can only realize revenue when I sell it after 2 years? sorry...I need to match my expenses with my revenues and so I release aprox 1.25 M per quater (asuming I am biulding 12.5% a Q) or else I would show I had HUGE expenses for 2 years...and then one HUGE sale...so I would have a loss each Q for 2 years...so stock worth jack all..then after 2 years I have a 10M revenue? not likely EDIT - all depends on the kind of business you do...and therefore it is up to the company to match revenues to expenses so the balance sheet looks decent ciV

To: WhatsUpWithThat who wrote (67598)	1/26/2000 5:19:00 PM
From: swisstrader	Respond to of 108040

WUWT...thanks for that!!...when I have more time tomorrow (and just in case anyone is interested) I can find the exact pronouncement in relation to how and when revs can be recognized...and it is WHEN THE GOODS ARE SHIPPED and this is WHETHER OR NOT YOU ARE DELL, HP, OR IBM...otherwise, this would get uglier than Cendant...how can people think you can make up your own acctg rules!!...in the meantime, if someone wants to go on the hunt, here's the FASB webpage: rutgers.edu