Revenue Recognition (2007)
"........ In addition, the Company’s customers can earn certain incentives, which are netted against sales in the consolidated income statements. These incentives include, but are not limited to, cash discounts, funds for promotional and marketing activities, and performance based incentive programs."
Revenue Recognition (2009)
"........ In addition, the Company’s customers can earn certain incentives, which are netted against sales OR RECORDED IN OPERATING AND SELLING EXPENSES IN THE CONSOLIDATED INCOME STATEMENTS (bold type face by poster). These incentives include, but are not limited to, cash discounts, funds for promotional and marketing activities, and performance based incentive programs. "
P_ignorant2 - specifically what are you asking me? If I know how GMCR accountants for its revenue? If this is your question, they account for their revenue as follows:
Point of Sale:
Dr. Receivable (Company X will not pay in cash, instead they choose consignment)
"Unearned Revenue" is only recorded in the services industry. It applies when Company X advances cash in return for your service which you perform at a later date.
Do you follow? One last note, if this company is not accounting for their revenue according to industry standards the SEC will be all over them, especially in the current state of this economy.
I totally agree with "tigerpac"! If you all think this company's revenue growth is bogus then why doesn't the public accountant raise the issue???? Pricewaterhouse is very reputable and believe me that they will not allow a company smear their reputation; I worked for them for 5-years. Pricewaterhouse constantly tell their employees the following: "No one client is more important than our integrity, honesty and reputation. Walk away if someone does not answer the door after your first knock."
Good Luck To All Longs!!!
Sounds like those who are losing in positions are now latching on to this claim as fact as a way to create more controversy.
Keep telling yourself it's true.Put some money on it if you are so sure. You could be a hero. A rich one too, at that.
That is interesting!!!
It means they can just mark up the price, and at the same time give discount to the customers to keep the price the same and WOW --- big REVENUE GROWTH!!!!
Only these are profitless growth!!!