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Title: Lighthouse Case Anal

Essay Details

Subject: Business
Author: Lillie G
Date: April 15, 2015
Level: University
Grade: B
Length: 3 / 801
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

They should be evaluated as a single arrangement when considering whether there are one or more accounting units (EITF 00-21 para. 2). However, when analyzing a Lighthouse arrangement with one of its customers, it appears that the portion of the agreement for delivery and installation of the physical device meets all the criteria for revenue recognition set for the in SAB 104...

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The contract is evidence of an agreement. Delivery and installation of the device has occurred. The $10,000 price is fixed. Although customers can cancel their contracts at anytime, it is unlikely that they will do so. The device is built to work exclusively with the Lighthouse service and there doesn't appear to be many competitors offering better deals...

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