Revenue recognition automotive industryIn May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Requirements Board (IASB) issued their converged regular, ASU 2014-09 Revenue from Contracts with Consumers.” The normal supplies a complete, industry-neutral revenue recognition model intended to increase financial statement comparability across companies and industries and significantly reduce the complexity inherent in today’s income recognition guidance. With regard to the timing of revenue recognition, automotive part suppliers who provide customized components might need to have to make some adjustments. These custom produced components are of no other use to the automotive company as they have been particularly supplied at the request of the client, so the business ought to get payment as and when the components are provided, and the income recognition would happen over time.
With ASC 606, the guidelines have changed to regularly apply a uniform revenue recognition principle across a wide selection of entities in the exact same way. In numerous cases, businesses contain events in contracts that are not overall performance obligations, like reselling items, solutions, or warranties. These items will be excluded from GAAP income recognition going forward.
KPO is Knowledge Processing Outsourcing, not to be confused with BPO, which is Business Processing Outsourcing. KPO is about providing understanding based services in the locations like market place research, organization study, financial analysis, legal services, etc., while BPO is about delivering customer care solutions, technical help, tele-sales etc. KPO market place is expected to grow from US $ 1.three billion in the … READ MORE >>>