Business > CASE STUDY > ACC502_AnalyzingRevenue.docx(1) ACC-502 Analyzing Revenue Grand Canyon University ACC- (All)

ACC502_AnalyzingRevenue.docx(1) ACC-502 Analyzing Revenue Grand Canyon University ACC-

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ACC502_AnalyzingRevenue.docx(1) ACC-502 Analyzing Revenue Grand Canyon University ACC-502 Analyzing Revenue Krispy Kreme Doughnuts began its humble start in 1937 selling their famous hot origina... l glazed doughnuts to customers in Winston-Salem, North Carolina through a hole in a building to customers on the street. The company eventually grew to be a national chain employing about seven thousand employees, selling approximately three billion doughnuts a year from one of its three hundred and fifty locations nationwide (DeCelestino, 2007). The rise and fall of this fairy tale story has become another example of fraudulent accounting and the impacts it has on business and investor faith in corporate America. Five Steps of the Revenue Recognition Model Revenue recognition under the US GAAP and IFRS identified similar steps to be able to identify when revenue should be recognized and disclosed on financial statements. The idea behind the five-step model is to be able to quantify the revenue that results from transfer of goods and services to customers over time. This model allows companies to report the revenue when the goods are transferred not when they receive compensation for the services or goods provided (Young et al., 2019). The five-step model works to identify contract(s) with the potential client, performance obligations within the contract(s), what the transaction price is going to be, issuing the transaction price to the performance obligation identified within the contract, and identifying t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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