The following aspects of a company’s revenue recognition policy are relevant to financial analysis:
To what extent a policy requires the company to [...].
Answer
make estimates
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Open it following aspects of a company’s revenue recognition policy are relevant to financial analysis:
Whether a policy results in recognition of revenue sooner rather than later,
To what extent a policy requires the company to <span>make estimates.<span><body><html>
Original toplevel document
3.3. Implications for Financial Analysis ods. Furthermore, a single company may use different revenue recognition policies for different businesses. Companies disclose their revenue recognition policies in the notes to their financial statement, often in the first note.
<span>The following aspects of a company’s revenue recognition policy are particularly relevant to financial analysis: whether a policy results in recognition of revenue sooner rather than later (sooner is less conservative), and to what extent a policy requires the company to make estimates. In order to analyze a company’s financial statements, and particularly to compare one company’s financial statements with those of another company, it is helpful to understand any diffe
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