Discuss laport ltd new accounting policy of revenue

Assignment Help Managerial Accounting
Reference no: EM132550842

LaPort Ltd is a publicly listed manufacturing company in Australia. Recently, in response to the declining sales revenue, the company developed a new revenue recognition policy where 50 per cent of its inventory cost would be recognised as revenue at completion of production rather than at the point of sale. As a result, LaPort Ltd's revenue recognition for the current year has increased by 30% compared to that of last year where the company was under old accounting policy to recognise revenue at the point of sale of those inventories rather than at the completion of production.

Required:

Question 1: Discuss if LaPort Ltd's new accounting policy of revenue recognition is appropriate.

Reference no: EM132550842

Questions Cloud

How students will present selected figure visually : Expectations for the student that explain the requirements, i.e., select a historical figure that has had an influence locally or globally.
Developing innovative and effective business model : Explain three of the nine building blocks for managers to use in developing an innovative and effective business model.
What is the bonds current price : You are considering the purchase of a $11,000 par value bond with a coupon rate of 6.3% that matures in 12 years. What is the bonds current price
Improve your work for a client-centric approach : Why do you feel this tip is more beneficial than others? If you were working as a consultant how would you implement these tips to improve your work
Discuss laport ltd new accounting policy of revenue : Discuss if LaPort Ltd's new accounting policy of revenue recognition is appropriate. LaPort Ltd is a publicly listed manufacturing company in Australia.
High rate of unemployment : The United States is suffering from a high rate of unemployment.
What is the ending inventory : Northwest uses a perpetual inventory system. What is the ending inventory assuming Northwest uses the gross method to record purchase
How ethical use of various assessments and data guides you : How the ethical use of various assessments and data guides you to identify students' strengths and needs to promote growth. How your assessments will support.
Youth violence in our country : How to improve upon this. Daily tragedies are reported on throughout our country involving school, gang, and domestic violence, all with a similar constant

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd