Revenue Recognition

I’d like to think I’ve got the financial savvy to recognize a revenue if I saw it, but it’s not like beauty, which is in the eye of the beholder. There are pages and pages of rules promulgated by the FASB (Financial Accounting Standards Board) that tell you is it is or is it ain’t a revenue.

revenue recog

AT&T, welcome to the fraud triangle.

My phone just up and died yesterday, so I went to the store to get a new one. The good news is that I was “eligible” for an upgrade (only $25.00 plus a $2.99 pro-ration fee) and my new phone is ONLY $749.00. Which I can pay in monthly installments with NO INTEREST.

Hmmmn. AT&T collects the sales tax and I just pay my monthly installments to the company store. No interest, because this is the kindest, bestest company ever and they are rewarding me for my brand loyalty?

Ha! Probably not. It’s more likely that AT&T will engage in some trickeration aka financial wizardry and move this asset off the balance sheet, fluffing the numbers so they’re nice and plump, serving them to investors like a channel stuffed Thanksgiving Turducken.

fraud triangle

Means, motive, and opportunity. Same old, same old.

When digging for some financial info on AT&T, I noticed that they are in the midst of a merger with Time-Warner. Curious I am about how this will play out. Besides the obvious:

Advertisements

About oldhwysixwest

I'm currently pursuing a PhD in accounting at LSU. I also write fiction when I can (usually 4 am).
This entry was posted in accounting, Education, LSU, Saving Money and tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s