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Flashcard 1429116947724

Tags
#sister-miriam-joseph #trivium
Question
[...] is knowledge of proximate causes (physics, mathematics, economics, etc.)
Answer
Science

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Science is knowledge of proximate causes (physics, mathematics, economics, etc.)

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Flashcard 1442965753100

Tags
#3-1-profit-maximization #cfa-level-1 #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Revenue comes from [...], and cost comes from the [...] in the production of those products.
Answer
the demand for the firm’s products

acquisition and utilization of the firm’s inputs

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Because profit is the difference between revenue and cost, an understanding of profit maximization requires that we examine both of those components. Revenue comes from the demand for the firm’s products, and cost comes from the acquisition and utilization of the firm’s inputs in the production of those products.

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3. ANALYSIS OF REVENUE, COSTS, AND PROFITS
Total variable cost divided by quantity; (TVC ÷ Q) Average total cost (ATC) Total cost divided by quantity; (TC ÷ Q) or (AFC + AVC) Marginal cost (MC) Change in total cost divided by change in quantity; (∆TC ÷ ∆Q) <span>3.1. Profit Maximization In free markets—and even in regulated market economies—profit maximization tends to promote economic welfare and a higher standard of living, and creates wealth for investors. Profit motivates businesses to use resources efficiently and to concentrate on activities in which they have a competitive advantage. Most economists believe that profit maximization promotes allocational efficiency—that resources flow into their highest valued uses. Overall, the functions of profit are as follows: Rewards entrepreneurs for risk taking when pursuing business ventures to satisfy consumer demand. Allocates resources to their most-efficient use; input factors flow from sectors with economic losses to sectors with economic profit, where profit reflects goods most desired by society. Spurs innovation and the development of new technology. Stimulates business investment and economic growth. There are three approaches to calculate the point of profit maximization. First, given that profit is the difference between total revenue and total costs, maximum profit occurs at the output level where this difference is the greatest. Second, maximum profit can also be calculated by comparing revenue and cost for each individual unit of output that is produced and sold. A business increases profit through greater sales as long as per-unit revenue exceeds per-unit cost on the next unit of output sold. Profit maximization takes place at the point where the last individual output unit breaks even. Beyond this point, total profit decreases because the per-unit cost is higher than the per-unit revenue from successive output units. A third approach compares the revenue generated by each resource unit with the cost of that unit. Profit contribution occurs when the revenue from an input unit exceeds its cost. The point of profit maximization is reached when resource units no longer contribute to profit. All three approaches yield the same profit-maximizing quantity of output. (These approaches will be explained in greater detail later.) Because profit is the difference between revenue and cost, an understanding of profit maximization requires that we examine both of those components. Revenue comes from the demand for the firm’s products, and cost comes from the acquisition and utilization of the firm’s inputs in the production of those products. 3.1.1. Total, Average, and Marginal Revenue This section briefly examines demand and revenue in preparation for addressing cost. Unless the firm is a pu







Flashcard 1450812247308

Tags
#estrategias
Question

La [...] conlleva tomar decisiones que se hacen con respecto a la dirección de la organización en su conjunto.

Answer
estrategia corporativa

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La estrategia corporativa conlleva tomar decisiones que se hacen con respecto a la dirección de la organización en su conjunto. Esta estrategia se refiere a los asuntos que afectan a la empresa en general, tales

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Estrategia de negocios y corporativa
Estrategia corporativa La estrategia corporativa conlleva tomar decisiones que se hacen con respecto a la dirección de la organización en su conjunto. Esta estrategia se refiere a los asuntos que afectan a la empresa en general, tales como decidir el tamaño y la composición del portafolio de negocios. Estrategia de negocios La estrategia de negocios es la forma en que un negocio compite en un sector particular. Las decisiones estratégicas adop







Flashcard 1474570095884

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
[...] are those assets that are expected to be consumed or converted into cash in the near future, typically one year or less.

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Current assets are those that are expected to be consumed or converted into cash in the near future, typically one year or less.

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3.1. Financial Statement Elements and Accounts
include the following: intangible assets, such as goodwill;3 property, plant, and equipment used in operations (e.g., land and buildings); other property held for investment, and investments in the securities of other companies. <span>Current assets are those that are expected to be consumed or converted into cash in the near future, typically one year or less. Inventory is the unsold units of product on hand (sometimes referred to as inventory stock). Trade receivables (also referred to as commercial receivables , or simply accounts rec







Flashcard 1476237069580

Tags
#cfa-level-1 #reading-23-financial-reporting-mechanics
Question
Decreases to liabilities and owners’ equity are recorded on the [...] side.
Answer
left side

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Increases to liabilities and owners’ equity are recorded on the right side of a T-account; decreases to liabilities and owners’ equity are recorded on the left side.

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APPENDIX 23: A DEBIT/CREDIT ACCOUNTING SYSTEM
sset, an entry is made to the left-hand side of a T-account. A decrease to an asset is recorded on the right side of a T-account. Liabilities and owners’ equity are referred to as the right side of the balance sheet (and accounting equation). <span>Increases to liabilities and owners’ equity are recorded on the right side of a T-account; decreases to liabilities and owners’ equity are recorded on the left side. At any point in time, the balance in an account is determined by summing all the amounts on the left side of the account, summing all the amounts on the right side of the a







Flashcard 1479142673676

Tags
#daniel-goleman #emotional-brain #emotional-iq #our-two-minds #what-are-emotions-for #when-passions-overwhelm-reasons
Question
When [...] surge, it is the emotional mind that captures the upper hand, swamping the rational mind
Answer
passions

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When passions surge, it is the emotional mind that captures the upper hand, swamping the rational mind

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Flashcard 1479154208012

Tags
#daniel-goleman #emotional-brain #emotional-iq #how-the-brain-grew #what-are-emotions-for #when-passions-overwhelm-reasons
Question
When we are in the grip of craving or fury, head-over- heels in love or recoiling in dread, it is the [...] that has us in its grip.
Answer
limbic system

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When we are in the grip of craving or fury, head-over- heels in love or recoiling in dread, it is the limbic system that has us in its grip.

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Flashcard 1479160237324

Tags
#daniel-goleman #emotional-brain #emotional-iq #how-the-brain-grew #what-are-emotions-for #when-passions-overwhelm-reasons
Question
[...] allowed an animal to be much smarter in its choices for survival, and to fine-tune its responses to adapt rather than having invariable and automatic reactions.
Answer
Learning and memory

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Learning and memory allowed an animal to be much smarter in its choices for survival, and to fine-tune its responses to adapt to changing demands rather than having invariable and automatic reactions.</spa

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Flashcard 1479166004492

Tags
#daniel-goleman #emotional-brain #emotional-iq #how-the-brain-grew #what-are-emotions-for #when-passions-overwhelm-reasons
Question
Distinction amongst smells was done by the "[...]," a part of the limbic wiring, and the rudimentary basis of the neocortex.
Answer
rhinencephalon," literally, the "nose brain

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The olfactory bulb and the limbic system make distinctions among smells and recognizing them, and so discriminating good from bad. This was done by the "rhinencephalon," literally, the "nose brain," a part of the limbic wiring, and the rudimentary basis of the neocortex, the thinking brain.

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Flashcard 1479601949964

Tags
#finance #has-images #steiner-mastering-financial-calculations-3ed
Question
These relationships can be reversed to give:
Answer

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pdf

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Flashcard 1479604047116

Tags
#deeplearning #neuralnetworks
Question
[...] ( Rumelhart et al. , ; , ). This algorithm has w axed and w aned in p opularity 1986a LeCun 1987 but as of this writing is currently the dominant approach to training deep mo dels.
Answer
back-propagation algorithm

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back-propagation algorithm ( Rumelhart et al. , ; , ). This algorithm has w axed and w aned in p opularity 1986a LeCun 1987 but as of this writing is currently the dominant approach to training deep mo dels.</spa

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Flashcard 1479605619980

Tags
#deeplearning #neuralnetworks
Question
[...] ( Hin ton et al. , 1986 ). This is the idea that each input to a system should b e represen ted b y man y features, and each feature should b e inv olved in the representation of many p ossible inputs.
Answer
distributed represen tation

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distributed represen tation ( Hin ton et al. , 1986 ). This is the idea that each input to a system should b e represen ted b y man y features, and each feature should b e inv olved in the representation of many p

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Flashcard 1479607192844

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#deeplearning #neuralnetworks
Question
distributed represen tation ( Hin ton et al. , 1986 ). This is the idea that [...]
Answer
each input to a system should b e represen ted b y man y features, and each feature should b e inv olved in the representation of many p ossible inputs.

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distributed represen tation ( Hin ton et al. , 1986 ). This is the idea that each input to a system should b e represen ted b y man y features, and each feature should b e inv olved in the representation of many p ossible inputs.

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Flashcard 1479608765708

Tags
#deeplearning #neuralnetworks
Question
Ho c hreiter and Sc hmidh ub er 1997 ( ) in tro duced the [...] net w ork to resolve some of these difficulties. T o da y , the [...] is widely used for many sequence mo deling tasks, including many natural language pro cessing tasks at Go ogle
Answer
long short-term memory or LSTM

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Ho c hreiter and Sc hmidh ub er 1997 ( ) in tro duced the long short-term memory or LSTM net w ork to resolve some of these difficulties. T o da y , the LSTM is widely used for many sequence mo deling tasks, including many natural language pro cessing tasks at Go ogle<

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Flashcard 1479611125004

Tags
#deeplearning #neuralnetworks
Question
Biological neurons are not esp ecially densely connected. As seen in figure , 1.10 our mac hine learning mo dels hav e had a num ber of connections p er neuron that w as within an order of magnitude of [...] for decades
Answer
even mammalian brains

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Biological neurons are not esp ecially densely connected. As seen in figure , 1.10 our mac hine learning mo dels hav e had a num ber of connections p er neuron that w as within an order of magnitude of even mammalian brains for decades

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Flashcard 1479612697868

Tags
#deeplearning #neuralnetworks
Question
In terms of the total n um ber of neurons, neural netw orks hav e b een astonishingly small until quite recently , as shown in figure . Since the introduction of hidden 1.11 units, artificial neural net w orks hav e doubled in size roughly every [...] years.
Answer
2.4

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n terms of the total n um ber of neurons, neural netw orks hav e b een astonishingly small until quite recently , as shown in figure . Since the introduction of hidden 1.11 units, artificial neural net w orks hav e doubled in size roughly every <span>2.4 years.<span><body><html>

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Flashcard 1479614270732

Tags
#deeplearning #neuralnetworks
Question
Unless new technologies allo w faster scaling, artificial neural netw orks will not hav e the same n um b er of neurons as the human brain un til at least the [...]s
Answer
2050

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Unless new technologies allo w faster scaling, artificial neural netw orks will not hav e the same n um b er of neurons as the human brain un til at least the 2050s

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Flashcard 1479617416460

Tags
#deeplearning #neuralnetworks
Question
[...] ( Gra v es 2014a et al. , ) that learn to read from memory cells and write arbitrary conten t to memory cells. Suc h neural net w orks can learn simple programs from examples of desired b ehavior. F or example, they can learn to sort lists of num b ers giv en examples of scrambled and sorted sequences. This self-programming technology is in its infancy , but in the future could in principle b e applied to nearly any task
Answer
neural T uring mac hines

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neural T uring mac hines ( Gra v es 2014a et al. , ) that learn to read from memory cells and write arbitrary conten t to memory cells. Suc h neural net w orks can learn simple programs from examples of desired

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Flashcard 1479618989324

Tags
#deeplearning #neuralnetworks
Question
In the con text of [...] an autonomous agen t must learn to p erform a task b y trial and error, without any guidance from the human op erator.
Answer
reinforcemen t learning,

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In the con text of reinforcemen t learning, an autonomous agen t must learn to p erform a task b y trial and error, without any guidance from the human op erator.

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Flashcard 1479620562188

Tags
#deeplearning #neuralnetworks
Question
Next, w e describ e the fundamen tal goals of machine learning. W e describe how to accomplish these goals b y [three things]
Answer
sp ecifying a mo del that represen ts certain b eliefs, designing a cost function that measures how well those beliefs corresp ond with realit y and using a training algorithm to minimize that cost function.

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Next, w e describ e the fundamen tal goals of machine learning. W e describe how to accomplish these goals b y sp ecifying a mo del that represen ts certain b eliefs, designing a cost function that measures how well those beliefs corresp ond with realit y and using a training algorithm to minimize that cost function.

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Flashcard 1479622397196

Tags
#matlab #programming
Question
[...] returns the scalar 1 (true) if any element of x is non-zero (true)
Answer
any(x)

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any(x) returns the scalar 1 (true) if any element of x is non-zero (true)

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Flashcard 1479625542924

Tags
#matlab #programming
Question
any(x) returns the scalar 1 (true) if any element of x is [...]
Answer
non-zero (true)

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any(x) returns the scalar 1 (true) if any element of x is non-zero (true)

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Flashcard 1479627115788

Tags
#matlab #programming
Question
[...] returns the scalar 1 if all the elements of x are non-zero
Answer
all(x)

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all(x) returns the scalar 1 if all the elements of x are non-zero

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Flashcard 1479631834380

Tags
#matlab #programming
Question
[...] returns 1 if a is a workspace variable. For other possible return values see help. Note that a must be enclosed in apostrophes
Answer
exist(’a’)

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exist(’a’) returns 1 if a is a workspace variable. For other possible return values see help. Note that a must be enclosed in apostrophes

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Flashcard 1479635766540

Tags
#matlab #programming
Question
[...] returns a vector containing the subscripts of the non-zero (true) ele- ments of x
Answer
find(x)

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find(x) returns a vector containing the subscripts of the non-zero (true) ele- ments of x

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Flashcard 1479637339404

Tags
#matlab #programming
Question
find(x) returns [...]
Answer
a vector containing the subscripts of the non-zero (true) ele- ments of x

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find(x) returns a vector containing the subscripts of the non-zero (true) ele- ments of x

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Flashcard 1479638912268

Tags
#matlab #programming
Question
[...] removes all the zero elements from a!
Answer
a = a( find(a) )

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a = a( find(a) ) removes all the zero elements from a!

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Flashcard 1479640485132

Tags
#matlab #programming
Question
a = a( find(a) ) [what does it do?]
Answer
removes all the zero elements from a!

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a = a( find(a) ) removes all the zero elements from a!

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Flashcard 1479642844428

Tags
#matlab #programming
Question
Another use of find is [...]
Answer
in finding the subscripts of the largest (or smallest) elements in a vector, when there is more than one.

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Another use of find is in finding the subscripts of the largest (or smallest) elements in a vector, when there is more than one.

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Flashcard 1479644417292

Tags
#matlab #programming
Question
[...] returns 1 if x is an empty array and 0 otherwise. An empty array has a size of 0-by-0
Answer
isempty(x)

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isempty(x) returns 1 if x is an empty array and 0 otherwise. An empty array has a size of 0-by-0

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Flashcard 1479645990156

Tags
#matlab #programming
Question
isempty(x) returns 1 [...] and 0 otherwise. An empty array has a size of 0-by-0
Answer
if x is an empty array

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isempty(x) returns 1 if x is an empty array and 0 otherwise. An empty array has a size of 0-by-0

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Flashcard 1479647563020

Tags
#matlab #programming
Question
isempty(x) returns 1 if x is an empty array and 0 otherwise. An empty array has a size of [...]
Answer
0-by-0

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isempty(x) returns 1 if x is an empty array and 0 otherwise. An empty array has a size of 0-by-0

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Flashcard 1479649135884

Tags
#matlab #programming
Question
[...] returns 1s for the elements of x which are +Inf or −Inf, and 0s otherwise
Answer
isinf(x)

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isinf(x) returns 1s for the elements of x which are +Inf or −Inf, and 0s otherwise

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Flashcard 1479652281612

Tags
#matlab #programming
Question
[...] returns 1s where the elements of x are NaN and 0s otherwise. This function may be used to remove NaNs from a set of data.
Answer
isnan(x)

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isnan(x) returns 1s where the elements of x are NaN and 0s otherwise. This function may be used to remove NaNs from a set of data.

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Flashcard 1479653854476

Tags
#matlab #programming
Question
isnan(x) returns 1s where the elements of x are [...] and 0s otherwise. This function may be used to remove NaNs from a set of data.
Answer
NaN

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isnan(x) returns 1s where the elements of x are NaN and 0s otherwise. This function may be used to remove NaNs from a set of data.

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Flashcard 1479655427340

Tags
#biochem #biology #cell
Question
Note that the C–H bond oxi- dation energy in step 6 drives the formation of both [...]. The breakage of the high-energy bond then drives ATP forma- tion
Answer
NADH and a high-energy phosphate bond

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Note that the C–H bond oxi- dation energy in step 6 drives the formation of both NADH and a high-energy phosphate bond. The breakage of the high-energy bond then drives ATP forma- tion

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Note that the [...] in step 6 drives the formation of both NADH and a high-energy phosphate bond. The breakage of the high-energy bond then drives ATP forma- tion
Answer
C–H bond oxi- dation energy

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Note that the C–H bond oxi- dation energy in step 6 drives the formation of both NADH and a high-energy phosphate bond. The breakage of the high-energy bond then drives ATP forma- tion

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Note that the C–H bond oxi- dation energy in step 6 drives the formation of both NADH and a high-energy phosphate bond. The breakage of the high-energy bond then drives [...]
Answer
ATP forma- tion

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Note that the C–H bond oxi- dation energy in step 6 drives the formation of both NADH and a high-energy phosphate bond. The breakage of the high-energy bond then drives ATP forma- tion

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Note that the C–H bond oxi- dation energy in step 6 drives the formation of both NADH and a high-energy phosphate bond. The [...] then drives ATP forma- tion
Answer
breakage of the high-energy bond

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Note that the C–H bond oxi- dation energy in step 6 drives the formation of both NADH and a high-energy phosphate bond. The breakage of the high-energy bond then drives ATP forma- tion

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To compensate for long periods of fasting, animals store fatty acids as fat droplets composed of water-insoluble [...]
Answer
triacylglycerols (also called triglycerides).

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To compensate for long periods of fasting, animals store fatty acids as fat droplets composed of water-insoluble triacylglycerols (also called triglycerides).

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When cells need more ATP than they can generate from the food molecules taken in from the bloodstream, they break down glycogen in a reaction that produces [...], which is rapidly converted to glucose 6-phosphate for gly- colysis
Answer
glucose 1-phosphate

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When cells need more ATP than they can generate from the food molecules taken in from the bloodstream, they break down glycogen in a reaction that produces glucose 1-phosphate, which is rapidly converted to glucose 6-phosphate for gly- colysis

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When cells need more ATP than they can generate from the food molecules taken in from the bloodstream, they break down glycogen in a reaction that produces glucose 1-phosphate, which is rapidly converted to [...] for gly- colysis
Answer
glucose 6-phosphate

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ml>When cells need more ATP than they can generate from the food molecules taken in from the bloodstream, they break down glycogen in a reaction that produces glucose 1-phosphate, which is rapidly converted to glucose 6-phosphate for gly- colysis<html>

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he oxidation of a gram of fat releases about [...] energy as the oxidation of a gram of glycogen
Answer
twice as much

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he oxidation of a gram of fat releases about twice as much energy as the oxidation of a gram of glycogen

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Moreover, glycogen differs from fat in binding a great deal of water, producing a [...] difference in the actual mass of glycogen required to store the same amount of energy as fat.
Answer
sixfold

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Moreover, glycogen differs from fat in binding a great deal of water, producing a sixfold difference in the actual mass of glycogen required to store the same amount of energy as fat.

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If our main fuel reservoir had to be carried as glycogen instead of fat, body weight would increase by an average of about [...]
Answer
60 pounds

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If our main fuel reservoir had to be carried as glycogen instead of fat, body weight would increase by an average of about 60 pounds

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The fats in plants are [...], just like the fats in animals, and differ only in the types of fatty acids that predominate
Answer
triacyl-glyc- erols (triglycerides)

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The fats in plants are triacyl-glyc- erols (triglycerides), just like the fats in animals, and differ only in the types of fatty acids that predominate

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The [...] ( , ) w as an early mo del (1943) of brain function.
Answer
McCulloch-Pitts Neuron

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The McCullo ch-Pitts Neuron ( , ) w as an early mo del McCullo ch and Pitts 1943 of brain function.

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This linear mo del (Mucollach-Piits Neuron model) could recognize tw o differen t categories of inputs b y testing whether f ( x w , ) is p ositiv e or negative. Of course, for the mo del to corresp ond to the desired definition of the categories, the w eigh ts needed to b e set correctly . These w eigh ts could b e set by [...]
Answer
the human op erator.

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categories of inputs b y testing whether f ( x w , ) is p ositiv e or negative. Of course, for the mo del to corresp ond to the desired definition of the categories, the w eigh ts needed to b e set correctly . These w eigh ts could b e set by <span>the human op erator.<span><body><html>

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This linear mo del [...] could recognize tw o differen t categories of inputs b y testing whether f ( x w , ) is p ositiv e or negative. Of course, for the mo del to corresp ond to the desired definition of the categories, the w eigh ts needed to b e set correctly . These w eigh ts could b e set by the human op erator.
Answer
(Mucollach-Piits Neuron model)

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This linear mo del (Mucollach-Piits Neuron model) could recognize tw o differen t categories of inputs b y testing whether f ( x w , ) is p ositiv e or negative. Of course, for the mo del to corresp ond to the desired definition of the c

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This linear mo del (Mucollach-Piits Neuron model) could recognize tw o differen t categories of inputs b y [...]. Of course, for the mo del to corresp ond to the desired definition of the categories, the w eigh ts needed to b e set correctly . These w eigh ts could b e set by the human op erator.
Answer
testing whether f ( x w , ) is p ositiv e or negative

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This linear mo del (Mucollach-Piits Neuron model) could recognize tw o differen t categories of inputs b y testing whether f ( x w , ) is p ositiv e or negative. Of course, for the mo del to corresp ond to the desired definition of the categories, the w eigh ts needed to b e set correctly . These w eigh ts could b e set by the human op erator.</

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[...], whic h dates from ab out the same time, simply returned the v alue of f ( x ) itself to predict a real num ber ( Widrow and Hoff 1960 , ), and could also learn to predict these num bers from data.
Answer
The adaptiv e linear elemen t (AD ALINE)

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The adaptiv e linear elemen t (AD ALINE), whic h dates from ab out the same time, simply returned the v alue of f ( x ) itself to predict a real num ber ( Widrow and Hoff 1960 , ), and could also learn to predict these num bers

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The adaptiv e linear elemen t (AD ALINE), whic h dates from ab out the same time, simply returned the [...] ( Widrow and Hoff 1960 , ), and could also learn to predict these num bers from data.
Answer
v alue of f ( x ) itself to predict a real num ber

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The adaptiv e linear elemen t (AD ALINE), whic h dates from ab out the same time, simply returned the v alue of f ( x ) itself to predict a real num ber ( Widrow and Hoff 1960 , ), and could also learn to predict these num bers from data.

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The training algorithm used to adapt the weigh ts of the ADALINE w as a sp ecial case of an algorithm called [...] . Sligh tly mo dified versions of the [...] algorithm remain the dominan t training algorithms for deep learning mo dels to da y .
Answer
sto c hastic gradien t descen t

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The training algorithm used to adapt the weigh ts of the ADALINE w as a sp ecial case of an algorithm called sto c hastic gradien t descen t . Sligh tly mo dified versions of the sto c hastic gradien t descent algorithm remain the dominan t training algorithms for deep learning mo dels to da y .

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Mo dels based on the f ( x w , ) used b y the p erceptron and ADALINE are called [...] . These mo dels remain some of the most widely used machine learning mo dels, though in man y cases they are tr aine d in different wa ys than the original mo dels were trained
Answer
linear mo dels

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Mo dels based on the f ( x w , ) used b y the p erceptron and ADALINE are called linear mo dels . These mo dels remain some of the most widely used machine learning mo dels, though in man y cases they are tr aine d in different wa ys than the original mo dels were trained</s

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Linear mo dels hav e many limitations. Most famously , they cannot [...]
Answer
learn the X OR function,

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Linear mo dels hav e many limitations. Most famously , they cannot learn the X OR function,

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The [...] ( F ukushima 1980 , ) in tro duced a p ow erful mo del architecture for pro cessing images that was inspired b y the structure of the mammalian visual system and later b ecame the basis for the mo dern conv olutional netw ork
Answer
Neo cognitron

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The Neo cognitron ( F ukushima 1980 , ) in tro duced a p ow erful mo del architecture for pro cessing images that was inspired b y the structure of the mammalian visual system and later b ecame the basis

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The Neo cognitron ( F ukushima 1980 , ) in tro duced a p ow erful mo del architecture for pro cessing images that was inspired b y the structure of the mammalian visual system and later b ecame the basis for [...]
Answer
the mo dern conv olutional netw ork

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tml>The Neo cognitron ( F ukushima 1980 , ) in tro duced a p ow erful mo del architecture for pro cessing images that was inspired b y the structure of the mammalian visual system and later b ecame the basis for the mo dern conv olutional netw ork<html>

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Most neural net w orks to da y are based on a model neuron called 9.10 the [...]
Answer
rectified linear unit .

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Most neural net w orks to da y are based on a model neuron called 9.10 the rectified linear unit .

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The connectionists b egan to study mo dels of cognition that could actually b e grounded in neural implemen tations ( T ouretzky and Minton 1985 , ), reviving many ideas dating back to the work of psychologist [...] in the 1940s
Answer
Donald Hebb

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l>The connectionists b egan to study mo dels of cognition that could actually b e grounded in neural implemen tations ( T ouretzky and Minton 1985 , ), reviving many ideas dating back to the work of psychologist Donald Hebb in the 1940s<html>

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The [...] b egan to study mo dels of cognition that could actually b e grounded in neural implemen tations ( T ouretzky and Minton 1985 , ), reviving many ideas dating back to the work of psychologist Donald Hebb in the 1940s
Answer
connectionists

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The connectionists b egan to study mo dels of cognition that could actually b e grounded in neural implemen tations ( T ouretzky and Minton 1985 , ), reviving many ideas dating back to the work of psychol

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The central idea in connectionism is [...]
Answer
that a large num ber of simple computational units can ac hiev e in telligen t behavior when net w ork ed together.

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The central idea in connectionism is that a large num ber of simple computational units can ac hiev e in telligen t behavior when net w ork ed together.

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How do you check if two vectors are different?
Answer
This is where any comes in: if any(a ~= b)

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if a ~= b % wrong wrong wrong!!! statement end However this will not work, since statement will only execute if each of the cor- responding elements of a and b differ. This is where any comes in: if any(a ~= b) % right right right!!! statement end

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ボルトロン - Wikipedia
ボルトロン 出典: フリー百科事典『ウィキペディア(Wikipedia)』 移動先: 案内、 検索 ボルトロン(Voltron: Defender of the Universe)は、アメリカ合衆国のテレビアニメシリーズ。バルトロンと表記する資料もある [1] 。 1984年から1985年まで全125話が<span>放送された第1シーズンはいずれも東映とバンダイが制作に関わった『百獣王ゴライオン』と『機甲艦隊ダイラガーXV』という全く関連性のない2つのアニメを統合して作られたハイパーリンク形式によるストーリーとなっている [2] 。1990年代に放送された第2シーズンは当時のCGI技術を用いて制作が行われた。後にこの作品の英語版が北米の製作・配給会社ワールド・イベント・プロダクションズ




Article 1479757139212

3. REVENUE RECOGNITION
#cfa-level-1 #reading-25-understanding-income-statement

Revenue is the top line in an income statement, so we begin the discussion of line items in the income statement with revenue recognition. We will first discuss revenue recognition under IFRS and US GAAP prior to the application of converged standards issued May 2014. In May 2014, the IASB and FASB each issued a new standard for revenue recognition. The nearly identical standards result from an effort to achieve convergence, consistency, and transparency in revenue recognition globally. The standards are effective for reporting periods beginning after 1 January 2017 under IFRS and after 15 December 2016 under US GAAP. Early adoption is permitted under IFRS. Key aspects and some implications of the standards are discussed at the end of this section. A first task is to explain some relevant accounting terminology. The terms revenue, sales, gains, losses, and net income (profit, net earnings) have been briefly defined. The IASB Framework for the Preparation and Presentation of Financial Statements (r



#cfa-level-1 #reading-25-understanding-income-statement
The IASB Framework for the Preparation and Presentation of Financial Statements Income definitions:

Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.
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3. REVENUE RECOGNITION
ramework”) further defines and discusses these income statement items. The Framework explains that profit is a frequently used measure of performance and is composed of income and expenses.9 It defines income as follows: <span>Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.10 In IFRS, the term “income” includes revenue and gains. Gains are similar to revenue, but they typically arise from secondary or peripheral activities rather than f




#cfa-level-1 #reading-25-understanding-income-statement
for a restaurant, the sale of surplus restaurant equipment for more than its carrying value is referred to as a gain rather than as revenue.
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3. REVENUE RECOGNITION
0 In IFRS, the term “income” includes revenue and gains. Gains are similar to revenue, but they typically arise from secondary or peripheral activities rather than from a company’s primary business activities. For example, <span>for a restaurant, the sale of surplus restaurant equipment for more than its carrying value is referred to as a gain rather than as revenue. Similarly, a loss typically arises from secondary activities. Gains and losses may be considered part of operating activities (e.g., a loss due to a decline in the value of inventory) o




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Question
for a restaurant, the sale of surplus restaurant equipment for more than its carrying value is referred to as a [...] rather than as [...].
Answer
gain

revenue

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for a restaurant, the sale of surplus restaurant equipment for more than its carrying value is referred to as a gain rather than as revenue.

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3. REVENUE RECOGNITION
0 In IFRS, the term “income” includes revenue and gains. Gains are similar to revenue, but they typically arise from secondary or peripheral activities rather than from a company’s primary business activities. For example, <span>for a restaurant, the sale of surplus restaurant equipment for more than its carrying value is referred to as a gain rather than as revenue. Similarly, a loss typically arises from secondary activities. Gains and losses may be considered part of operating activities (e.g., a loss due to a decline in the value of inventory) o







General Principles of revenue recognition
#cfa-level-1 #reading-25-understanding-income-statement

An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time.

When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11

  • the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

  • the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

  • the amount of revenue can be measured reliably;

  • it is probable that the economic benefits associated with the transaction will flow to the entity; and

  • the costs incurred or to be incurred in respect of the transaction can be measured reliably.

In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost.

IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12

IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the foll

...
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3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>




#cfa-level-1 #reading-25-understanding-income-statement
A fundamental principle of accrual accounting is that revenue is recognized when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services.
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body>An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cas

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>




Flashcard 1479768411404

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
A company’s financial records should reflect revenue from the sale when the [...] and [...] of ownership is transferred.
Answer
risk and reward

This is often when the company delivers the goods or services.

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A fundamental principle of accrual accounting is that revenue is recognized when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services.

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







#cfa-level-1 #reading-25-understanding-income-statement

IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:

  • the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

  • the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

  • the amount of revenue can be measured reliably;

  • it is probable that the economic benefits associated with the transaction will flow to the entity; and

  • the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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Open it
. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. <span>IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>




Flashcard 1479772605708

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question

IFRS specify that revenue from the sale of goods is to be recognized when the following conditions are satisfied:

  • the amount of revenue can be [...];

Answer
measured reliably

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
ds of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be <span>measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect o

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







Flashcard 1479774965004

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question

IFRS specify that revenue from the sale of goods is to be recognized when the following conditions are satisfied:

  • it is probable that the economic benefits associated with the transaction [...]

Answer
will flow to the entity

statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Parent (intermediate) annotation

Open it
inuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits <span>associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. <span><body><html>

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







Flashcard 1479777324300

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question

IFRS specify that revenue from the sale of goods is to be recognized when the following conditions are satisfied:

  • the [...] in respect of the transaction can be measured reliably.

Answer
costs incurred or to be incurred

statusnot learnedmeasured difficulty37% [default]last interval [days]               
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effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the <span>costs incurred or to be incurred in respect of the transaction can be measured reliably. <span><body><html>

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







#cfa-level-1 #reading-25-understanding-income-statement
In simple words revenue is recognized when

The seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser),

The seller cannot tell the purchaser what to do with the goods,

The seller knows what it expects to collect and is reasonably certain of collection,

The seller knows how much the goods cost
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started reading on finished reading on


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Open it
it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. <span>In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>




Flashcard 1479782042892

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
In simple words revenue is recognized when

The seller no longer [...]

Answer
bears risks with respect to the goods

(If the goods were destroyed, it would be a loss to the purchaser),

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
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Parent (intermediate) annotation

Open it
In simple words revenue is recognized when The seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), The seller cannot tell the purchaser what to do with the goods, The seller

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







Flashcard 1479784402188

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
In simple words revenue is recognized when


The seller cannot tell [...],

Answer
the purchaser what to do with the goods

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
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Open it
>In simple words revenue is recognized when The seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), The seller cannot tell the purchaser what to do with the goods, The seller knows what it expects to collect and is reasonably certain of collection, The seller knows how much the goods cost<span><body><html>

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







Flashcard 1479786761484

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
In simple words revenue is recognized when

The seller knows what it expects to collect and [...],
Answer
is reasonably certain of collection

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
espect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), The seller cannot tell the purchaser what to do with the goods, The seller knows what it expects to collect and <span>is reasonably certain of collection, The seller knows how much the goods cost<span><body><html>

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







Flashcard 1479789120780

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
In simple words revenue is recognized when


The seller knows how much the goods [...]
Answer
cost

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
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Open it
loss to the purchaser), The seller cannot tell the purchaser what to do with the goods, The seller knows what it expects to collect and is reasonably certain of collection, The seller knows how much the goods <span>cost<span><body><html>

Original toplevel document

3. REVENUE RECOGNITION
lace and measures revenue at the amount of cash received. In practice, however, determining when revenue should be recognized and at what amount is considerably more complex for reasons discussed in the following sections. <span>3.1. General Principles An important aspect concerning revenue recognition is that it can occur independently of cash movements. For example, assume a company sells goods to a buyer on credit, so does not actually receive cash until some later time. A fundamental principle of accrual accounting is that revenue is recognized (reported on the income statement) when it is earned, so the company’s financial records reflect revenue from the sale when the risk and reward of ownership is transferred; this is often when the company delivers the goods or services. If the delivery was on credit, a related asset, such as trade or accounts receivable, is created. Later, when cash changes hands, the company’s financial records simply reflect that cash has been received to settle an account receivable. Similarly, there are situations when a company receives cash in advance and actually delivers the product or service later, perhaps over a period of time. In this case, the company would record a liability for unearned revenue when the cash is initially received, and revenue would be recognized as being earned over time as products and services are delivered. An example would be a subscription payment received for a publication that is to be delivered periodically over time. When to recognize revenue (when to report revenue on the income statement) is a critical issue in accounting. IFRS specify that revenue from the sale of goods is to be recognized (reported on the income statement) when the following conditions are satisfied:11 the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In simple words, this basically says revenue is recognized when the seller no longer bears risks with respect to the goods (for example, if the goods were destroyed by fire, it would be a loss to the purchaser), the seller cannot tell the purchaser what to do with the goods, the seller knows what it expects to collect and is reasonably certain of collection, and the seller knows how much the goods cost. IFRS note that the transfer of the risks and rewards of ownership normally occurs when goods are delivered to the buyer or when legal title to goods transfers. However, as noted by the above remaining conditions, physical transfer of goods will not always result in the recognition of revenue. For example, if goods are delivered to a retail store to be sold on consignment and title is not transferred, the revenue would not yet be recognized.12 IFRS specify similar criteria for recognizing revenue for the rendering of services.13 When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the balance sheet date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. IFRS criteria for recognizing interest, royalties, and dividends are that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of the revenue can be reliably measured. US GAAP14 specify that revenue should be recognized when it is “realized or realizable and earned.” The US Securities and Exchange Commission (SEC),15 motivated in part because of the frequency with which overstating revenue occurs in connection with fraud and/or misstatements, provides guidance on how to apply the accounting principles. This guidance lists four criteria to determine when revenue is realized or realizable and earned: There is evidence of an arrangement between buyer and seller. For instance, this would disallow the practice of recognizing revenue in a period by delivering the product just before the end of an accounting period and then completing a sales contract after the period end. The product has been delivered, or the service has been rendered. For instance, this would preclude revenue recognition when the product has been shipped but the risks and rewards of ownership have not actually passed to the buyer. The price is determined, or determinable. For instance, this would preclude a company from recognizing revenue that is based on some contingency. The seller is reasonably sure of collecting money. For instance, this would preclude a company from recognizing revenue when the customer is unlikely to pay. Companies must disclose their revenue recognition policies in the notes to their financial statements (sometimes referred to as footnotes). Analysts should review these policies carefully to understand how and when a company recognizes revenue, which may differ depending on the types of product sold and services rendered. Exhibit 4 presents a portion of the summary of significant accounting policies note that discusses revenue recognition for DaimlerChrysler (DB-F: DAI) from its 2009 annual report, prepared under IFRS. <span><body><html>







Flashcard 1479798557964

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
With long-term contracts where the outcome can be reliably measured, the [...] method of revenue recognition is used.
Answer
percentage-of-completion

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill






Flashcard 1479801965836

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
With real estate sales where there is doubt about the buyer’s ability to complete payments, the [...] and cost recovery method of revenue recognition are used.
Answer
installment method

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Flashcard 1479804587276

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#cfa-level-1 #reading-25-understanding-income-statement
Question
With real estate sales where there is doubt about the buyer’s ability to complete payments, the installment method and [...] method of revenue recognition are used.
Answer
cost recovery

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Article 1479806422284

3.2.1. Long-Term Contracts
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition

A long-term contract is one that spans a number of accounting periods. Such contracts raise issues in determining when the earnings process has been completed and revenue recognition should occur. How should a company apportion the revenue earned under a long-term contract to each accounting period? If, for example, the contract is a service contract or a licensing arrangement, the company may recognize the revenue on a prorated basis over the period of time of the contract rather than at the end of the contract term. Under IFRS, this may be done using the percentage-of-completion method.16 Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered. Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.17 IFRS provide that when the outcome of a construction contract can be measured relia



#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
A long-term contract is one that spans a number of accounting periods.
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3.2.1. Long-Term Contracts
A long-term contract is one that spans a number of accounting periods. Such contracts raise issues in determining when the earnings process has been completed and revenue recognition should occur. How should a company apportion the revenue earned under a l




Flashcard 1479809043724

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
A long-term contract is one that [...].
Answer
spans a number of accounting periods

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A long-term contract is one that spans a number of accounting periods.

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3.2.1. Long-Term Contracts
A long-term contract is one that spans a number of accounting periods. Such contracts raise issues in determining when the earnings process has been completed and revenue recognition should occur. How should a company apportion the revenue earned under a l







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered.
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3.2.1. Long-Term Contracts
a licensing arrangement, the company may recognize the revenue on a prorated basis over the period of time of the contract rather than at the end of the contract term. Under IFRS, this may be done using the percentage-of-completion method.16 <span>Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered. Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.17 IFRS provide that when the outcome




Flashcard 1479811665164

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under the [...] method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered.
Answer
percentage-of-completion

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Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered.

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3.2.1. Long-Term Contracts
a licensing arrangement, the company may recognize the revenue on a prorated basis over the period of time of the contract rather than at the end of the contract term. Under IFRS, this may be done using the percentage-of-completion method.16 <span>Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered. Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.17 IFRS provide that when the outcome







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.
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3.2.1. Long-Term Contracts
s may be done using the percentage-of-completion method.16 Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered. <span>Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.17 IFRS provide that when the outcome of a construction contract can be measured reliably, revenue and expenses should be recognized in reference to the stage of completion. US GAAP have




Flashcard 1479814286604

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
[...] contracts are examples of long-term contracts that may use the percentage-of-completion method.
Answer
Construction

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Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.

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3.2.1. Long-Term Contracts
s may be done using the percentage-of-completion method.16 Under the percentage-of-completion method, revenue is recognized based on the stage of completion of a transaction or contract and is, thus, recognized when the services are rendered. <span>Construction contracts are examples of contracts that may span a number of accounting periods and that may use the percentage-of-completion method.17 IFRS provide that when the outcome of a construction contract can be measured reliably, revenue and expenses should be recognized in reference to the stage of completion. US GAAP have







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement.
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3.2.1. Long-Term Contracts
e of a construction contract can be measured reliably, revenue and expenses should be recognized in reference to the stage of completion. US GAAP have similar requirements for long-term contracts including construction contracts. <span>Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement. Contract costs for the period are expensed against the revenue. Therefore, net income or profit is reported each year as work is performed. Under IFRS, if the outcome of th




Flashcard 1479817694476

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under the percentage-of-completion method, in each accounting period, the company [...] and then reports that percentage of the total contract revenue in its income statement.
Answer
estimates what percentage of the contract is complete

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Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement.

Original toplevel document

3.2.1. Long-Term Contracts
e of a construction contract can be measured reliably, revenue and expenses should be recognized in reference to the stage of completion. US GAAP have similar requirements for long-term contracts including construction contracts. <span>Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement. Contract costs for the period are expensed against the revenue. Therefore, net income or profit is reported each year as work is performed. Under IFRS, if the outcome of th







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
In the % of completion method What happens to costs?

Contract costs for the period are expensed against the revenue.
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3.2.1. Long-Term Contracts
ts. Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement. <span>Contract costs for the period are expensed against the revenue. Therefore, net income or profit is reported each year as work is performed. Under IFRS, if the outcome of the contract cannot be measured reliably, then revenue may be reco




Flashcard 1479821102348

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
In the % of completion method What happens to costs?

[...]
Answer
Contract costs for the period are expensed against the revenue.

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In the % of completion method What happens to costs? Contract costs for the period are expensed against the revenue.

Original toplevel document

3.2.1. Long-Term Contracts
ts. Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement. <span>Contract costs for the period are expensed against the revenue. Therefore, net income or profit is reported each year as work is performed. Under IFRS, if the outcome of the contract cannot be measured reliably, then revenue may be reco







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses.
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3.2.1. Long-Term Contracts
d incurred. Under this method, no profit is recognized until all the costs had been recovered. Under US GAAP, but not under IFRS, a revenue recognition method used when the outcome cannot be measured reliably is the completed contract method. <span>Under the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. Under US GAAP, the completed contract method is also acceptable when the entity




Flashcard 1479823723788

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under the [...] method, the company does not report any income until the contract is substantially finished, although provision should be made for expected losses.

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Under the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision sho

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3.2.1. Long-Term Contracts
d incurred. Under this method, no profit is recognized until all the costs had been recovered. Under US GAAP, but not under IFRS, a revenue recognition method used when the outcome cannot be measured reliably is the completed contract method. <span>Under the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. Under US GAAP, the completed contract method is also acceptable when the entity







Flashcard 1479826083084

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under the completed contract method, what does it mean for the contract to be substantially finished?
Answer
That the remaining costs and potential risks are insignificant in amount

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Under the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses.

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3.2.1. Long-Term Contracts
d incurred. Under this method, no profit is recognized until all the costs had been recovered. Under US GAAP, but not under IFRS, a revenue recognition method used when the outcome cannot be measured reliably is the completed contract method. <span>Under the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. Under US GAAP, the completed contract method is also acceptable when the entity







Flashcard 1479828442380

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under the completed contract method, billings and costs are accumulated on [...] rather than flowing through the income statement
Answer
the balance sheet

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3.2.1. Long-Term Contracts
the completed contract method, the company does not report any income until the contract is substantially finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. <span>Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts. Note that if a contract is started and completed in the same period,







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts.
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3.2.1. Long-Term Contracts
y finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. <span>Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts. Note that if a contract is started and completed in the same period, there is no difference between the percentage-of-completion and completed contract methods. Examples 1,




Flashcard 1479831850252

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under US GAAP, the completed contract method is also acceptable when the entity has primarily [...].
Answer
short-term contracts


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Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts.

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3.2.1. Long-Term Contracts
y finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. <span>Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts. Note that if a contract is started and completed in the same period, there is no difference between the percentage-of-completion and completed contract methods. Examples 1,







Flashcard 1479834209548

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Note that if a contract is [...], there is no difference between the percentage-of-completion and completed contract methods.
Answer

started and completed in the same period

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Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts.

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3.2.1. Long-Term Contracts
y finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. <span>Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts. Note that if a contract is started and completed in the same period, there is no difference between the percentage-of-completion and completed contract methods. Examples 1,







Flashcard 1479834733836

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#odersky-programming-in-scala-3ed #scala
Question
So far, the only code you have seen added to packages are classes, traits, and
Answer
standalone objects

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#deeplearning #neuralnetworks
If each element is in R , and the vector has n elemen ts, then the v ector lies in the set formed by taking the Cartesian pro duct of R n times, denoted as R n
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#deeplearning #neuralnetworks
W e use the − sign to index the complement of a set. F or example x − 1 is the v ector con taining all elemen ts of x except for x 1 , and x − S is the v ector con taining all of the elements of except for x x 1 , x 3 and x 6
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#deeplearning #neuralnetworks
If a real-v alued matrix A has a height of m and a width of n , then we sa y that A ∈ R m n ×
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#deeplearning #neuralnetworks
W e can identi fy all of the n um b ers with v ertical co ordinate i b y writing a “ ” for the horizontal : co ordinate. F or example, A i, : denotes the horizon tal cross section of A with v ertical co ordinate i
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#deeplearning #neuralnetworks
The transp ose of the matrix can be thought of as a mirror image across the main diagonal.
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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned.
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3.2.1. Long-Term Contracts
han the completed contract method and thus may be considered a less conservative approach. In addition, the percentage-of-completion method relies on management estimates and is thus not as objective as the completed contract method. However, <span>an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned. Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is




#deeplearning #neuralnetworks
f ( A ) i,j giv es elemen t ( i, j ) of the matrix computed by applying the function to . f A
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#deeplearning #neuralnetworks
The transp ose of a matrix is the mirror image of the matrix across a diagonal line, called the main diagonal , running do wn and to the righ t, starting from its upp er left corner.
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#deeplearning #neuralnetworks
F rom this, we can see that a scalar is its own transp ose: a a =
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#deeplearning #neuralnetworks
W e can add matrices to each other, as long as they ha v e the same shap e, just b y adding their corresp onding elemen ts: where C A B = + C i,j = A i,j + B i,j
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#deeplearning #neuralnetworks
W e can also add a scalar to a matrix or multiply a matrix by a scalar, just b y performing that op eration on eac h element of a matrix: D = a · B + c where D i,j = a B · i,j + c
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#deeplearning #neuralnetworks
W e allo w the addition of matrix and a vector, yielding another matrix: C = A + b , where C i,j = A i,j + b j . In other w ords, the vector b is added to each row of the matrix.
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#deeplearning #neuralnetworks
This shorthand eliminates the need to define a matrix with b copied in to eac h ro w b efore doing the addition. This implicit copying of b to man y lo cations is called . broadcasting
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#deeplearning #neuralnetworks
The matrix pro duct of matrices A and B is a third matrix C . In order for this pro duct to b e defined, A m ust ha v e the same num b er of columns as B has rows. If A is of shap e m n × and B is of shap e n p × , then C is of shap e m p ×
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#deeplearning #neuralnetworks
The pro duct op eration is defined b y C i,j = k A i,k B k,j .
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#deeplearning #neuralnetworks
Note that the standard pro duct of tw o matrices is just a matrix con taining not the pro duct of the individual elements. Suc h an op eration exists and is called the elemen t-wise pro duct Hadamard pro duct or , and is denoted as . A
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#deeplearning #neuralnetworks
The dot product b et ween t w o vectors x and y of the same dimensionality is the matrix pro duct x y . W e can think of the matrix product C = AB as computing C i,j as the dot pro duct b et w een ro w of and column of . i A j B
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#deeplearning #neuralnetworks
F or example, matrix m ultiplication is distributiv e: A B C AB AC ( + ) = + . (2.6) It is also asso ciativ e: A B C AB C ( ) = ( ) . (2.7) Matrix multiplication is commutativ e (the condition not AB = B A do es not alw a ys hold), unlik e scalar multiplication.
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#deeplearning #neuralnetworks
the dot pro duct b etw een tw o v ectors is comm utativ e: x y y = x
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#deeplearning #neuralnetworks
The transp ose of a matrix pro duct has a simple form: \((AB)^{T} = B^{T}A^{T}\) . (2.9) This allo ws us to demonstrate equation , b y exploiting the fact that the v alue 2.8 of suc h a pro duct is a scalar and therefore equal to its o wn transp ose:\( x^Ty = (x^Ty)^T = y^T x\)
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#deeplearning #neuralnetworks
Linear algebra offers a p o w erful to ol called matrix in v ersion that allo ws us to analytically solv e equation for many v alues of . 2.11 A
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#deeplearning #neuralnetworks
Linear algebra offers a p o w erful to ol called matrix in v ersion that allo ws us to analytically solv e equation for many v alues of . 2.11 A
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#deeplearning #neuralnetworks
An iden tit y matrix is a matrix that do es not c hange an y vector when we m ultiply that vector by that matrix. W e denote the iden tit y matrix that preserves n -dimensional v ectors as I n . F ormally , I n ∈ R n n × , and ∀ ∈ x R n , I n x x =
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#deeplearning #neuralnetworks
The structure of the identit y matrix is simple: all of the entries along the main diagonal are 1, while all of the other entries are zero
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#deeplearning #neuralnetworks
The matrix in verse of A is denoted as A − 1 , and it is defined as the matrix suc h that A − 1 A I = n
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#deeplearning #neuralnetworks
W e can now solve equation Ax = b by the following steps:
1. A-1Ax = A−1b
2. Inx = A−1b
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#deeplearning #neuralnetworks
How ever, A − 1 is primarily useful as a theoretical to ol, and should not actually b e used in practice for most softw are applications. Because A − 1 can b e represented with only limited precision on a digital computer, algorithms that make use of the v alue of b can usually obtain more accurate estimates of . x
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#biochem #biology #cell
fatty acids enter the bloodstream, where they bind to the abundant blood protein, serum albumin.
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#biochem #biology #cell
he citric acid cycle accounts for about two-thirds of the total oxidation of carbon compounds in most cells
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#biochem #biology #cell
In addition to three molecules of NADH, each turn of the cycle also produces one molecule of FADH 2 (reduced flavin adenine dinucleotide) from FAD (see Figure 2–39), and one mol- ecule of the ribonucleoside triphosphate GTP from GDP
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#biochem #biology #cell
n total, the complete oxidation of a molecule of glucose to H 2 O and CO 2 is used by the cell to produce about 30 molecules of ATP.
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#biochem #biology #cell
Most organic nitrogen has been in circulation for some time, passing from one living organism to another. Thus, present-day nitrogen-fixing reactions can be said to perform a “topping-up” function for the total nitrogen supply
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#biochem #biology #cell
All of the nitrogens in the purine and pyrimidine bases (as well as some of the carbons) are derived from the plentiful amino acids glutamine, aspartic acid, and glycine, whereas the ribose and deoxyribose sugars are derived from glucose.
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#biochem #biology #cell
Sulfur is abundant on Earth in its most oxidized form, sulfate (SO 4 2– ). To be useful for life, sulfate must be reduced to sulfide (S 2– ), the oxidation state of sulfur required for the synthesis of essential biological molecules, including the amino acids methionine and cysteine, coenzyme A (see Figure 2–39), and the iron-sulfur centers essential for electron transport (see Figure 14–16)
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#biochem #biology #cell
Humans and other animals cannot reduce sulfate and must therefore acquire the sulfur they need for their metabolism in the food that they eat
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#biochem #biology #cell
THE ESSENTIAL AMINO ACIDS MBoC6 m2.87/2.62 THREONINE METHIONINE LYSINE VALINE LEUCINE ISOLEUCINE HISTIDINE PHENYLALANINE TRYPTOPHAN Figure 2–62 The nine essential amino acids.
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#biochem #biology #cell
In contrast, liver cells supply glucose to actively contracting muscle cells and recycle the lactic acid produced by muscle cells back into glucose.
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#biochem #biology #cell
Is the shared chemistry inside all living cells a clue for deciphering the environment on Earth where the first cells originated? For example, what might we conclude from the universally shared high K + /Na + ratio, neutral pH, and central role of phosphates?
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#biochem #biology #cell
A 70-kg adult human (154 lb) could meet his or her entire energy needs for one day by eating 3 moles of glucose (540 g)
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#biochem #biology #cell
Even at 37 o C, 15% of the water molecules are joined to four others in a short-lived assembly known as a “flickering cluster.
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#biochem #biology #cell
The characteristic “size” for each atom is specified by a unique van der Waals radius. The contact distance between any two noncovalently bonded atoms is the sum of their van der Waals radii
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#biochem #biology #cell
Glucose is phosphorylated by ATP using hexokinase enzyme to form a sugar phosphate. The negative charge of the phosphate prevents passage of the sugar phosphate through the plasma membrane, trapping glucose inside the cell
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#biochem #biology #cell
A readily reversible rearrangement of the chemical structure (isomerization) moves the carbonyl oxygen from carbon 1 to carbon 2, forming a ketose from an aldose sugar using phosphoglucose isomerase
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#biochem #biology #cell
The new hydroxyl group on carbon 1 is phosphorylated by ATP, in preparation for the formation of two three-carbon sugar phosphates. The entry of sugars into glycolysis is controlled at this step, through regulation of the enzyme phosphofructokinase
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#biochem #biology #cell
The six-carbon sugar is cleaved to produce two three-carbon molecules. Only the glyceraldehyde 3-phosphate can proceed immediately through glycolysis.
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#biochem #biology #cell
The other product of step 4, dihydroxyacetone phosphate, is isomerized to form glyceraldehyde 3-phosphate
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#biochem #biology #cell
The two molecules of glyceraldehyde 3-phosphate are oxidized. The energy-generation phase of glycolysis begins, as NADH and a new high-energy anhydride linkage to phosphate are formed (see Figure 13–5)
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#biochem #biology #cell
The transfer to ADP of the high-energy phosphate group that was generated in step 6 forms ATP
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#biochem #biology #cell
The remaining phosphate ester linkage in 3-phosphoglycerate, which has a relatively low free energy of hydrolysis, is moved from carbon 3 to carbon 2 to form 2-phosphoglycerate
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#biochem #biology #cell
The removal of water from 2-phosphoglycerate creates a high-energy enol phosphate linkage.
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#biochem #biology #cell
The transfer to ADP of the high-energy phosphate group that was generated in step 9 forms ATP, completing glycolysis
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#biochem #biology #cell
Proteins constitute most of a cell’s dry mass.
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#biochem #biology #cell
Individual noncovalent bonds are 30–300 times weaker than the typical covalent bonds that create biological molecules
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#biochem #biology #cell
Although a protein chain can fold into its correct conformation without out- side help, in a living cell special proteins called molecular chaperones often assist in protein folding. Molecular chaperones bind to partly folded polypeptide chains and help them progress along the most energetically favorable folding pathway. In the crowded conditions of the cytoplasm, chaperones are required to prevent the temporarily exposed hydrophobic regions in newly synthesized protein chains from associating with each other to form protein aggregates (see p. 355). However, the final three-dimensional shape of the protein is still specified by its amino acid sequence: chaperones simply make reaching the folded state more reliable.
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#biochem #biology #cell
Proteins come in a wide variety of shapes, and most are between 50 and 2000 amino acids long.
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Flashcard 1479934348556

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
An advantage of the [...] method is that it results in better matching of revenue recognition with the accounting period in which it was earned.
Answer
percentage-of-completion

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an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned.

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3.2.1. Long-Term Contracts
han the completed contract method and thus may be considered a less conservative approach. In addition, the percentage-of-completion method relies on management estimates and is thus not as objective as the completed contract method. However, <span>an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned. Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is







#biochem #biology #cell
protein domains—structural units that fold more or less independently of each other,
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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP.
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3.2.1. Long-Term Contracts
imates and is thus not as objective as the completed contract method. However, an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned. <span>Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP. Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used (e.g., percentag




Flashcard 1479939329292

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Which method of revenue recognition is required for long-term contracts when the outcome can be measured reliably under both IFRS and US GAAP?
Answer
percentage-of-completion

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Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP.

Original toplevel document

3.2.1. Long-Term Contracts
imates and is thus not as objective as the completed contract method. However, an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned. <span>Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP. Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used (e.g., percentag







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used.
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3.2.1. Long-Term Contracts
ing with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP. <span>Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used (e.g., percentage-of-completion or completed contract). <span><body><html>




Flashcard 1479942737164

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is [...], regardless of the method used.
Answer
reported immediately, not upon completion of the contract

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Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used.

Original toplevel document

3.2.1. Long-Term Contracts
ing with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP. <span>Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used (e.g., percentage-of-completion or completed contract). <span><body><html>







#bayes #programming #r #statistics
The key application that makes Bayes’ rule so useful is when the row variable represents data values and the column variable represents parameter values.
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Article 1479945882892

3.2.2. Installment Sales
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition

As noted above, revenue is normally reported when goods are delivered or services are rendered, independent of the period in which cash payments for those goods or services are received. This principle applies even to installment sales —sales in which proceeds are to be paid in installments over an extended period. For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 International standards note, however, that the guidance for revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country. Under limited circumstances, recognition of revenue or profit may be required to be deferred for some installment sales. An example of such deferral arises for certain sales of real estate on an install



#bayes #programming #r #statistics
A model of data specifies the probability of particular data values given the model’s structure and parameter values. The model also indicates the probability of the various parameter values. In other words, a model specifies p(data values | parameters values) along with the prior, p(parameters values)
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#bayes #programming #r #statistics
we use Bayes’ rule to convert that to what we really want to know, which is how strongly we should believe in the various parameter values, given the data: p(parameters values | data values
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#matlab #programming
As we saw above, use a semi-colon to indicate the end of a row when enter- ing a matrix. Bigger matrices can be constructed from smaller ones, e.g., the statements a=[12;34]; x=[56]; a = [a; x] result in a= 12 34 56
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#matlab #programming
Instead of a semi-colon, you can use a line-feed (Enter) to indicate the end of arow
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#matlab #programming
if you assign a value to an element with a subscript which is out of range the matrix is enlarged to accommodate the new element, for example, the assignment a(3,3) = 7 will add a third column to a with 0s everywhere except at a(3,3)
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Flashcard 1479954271500

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
What is the accounting treatment of a long-term contract under the completed contract method if they spend 3 million?
Answer
The $3 million expenditure would be reported as an increase in the inventory account “construction in progress” and a decrease in cash.

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#matlab #programming
if a is the matrix a= 123 456 789 the statement a(2:3,1:2) results in 45 78
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#matlab #programming
the statement a(3,:) results in 789 (returns third row)
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#matlab #programming
a(1:2,2:3) = ones(2) results in a= 111 411 789 (replaces the 2-by-2 submatrix composed of the first and second row and the second and third column with a square matrix of 1s)
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#matlab #programming
the colon op- erator is being used to create vector subscripts. However, a colon by itself in place of a subscript denotes all the elements of the corresponding row or column.
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#matlab #programming
The keyword end refers to the last row or column of an array
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#matlab #programming
the statement a(:) = b results in a= 15 43 26 (the contents of b are strung out into one long column and then fed into a by columns)
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#matlab #programming
a(:) = 1:6 (with a as above) results in a= 14 25 36
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#matlab #programming
Reshaping can also be done with the reshape function
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#matlab #programming
On the right-hand side of an assignment, a(:) gives all the elements of a strung out by columns in one long column vector
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Flashcard 1479971310860

Question
Installment Sales en español
Answer
Ventas a plazos

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#matlab #programming
As a special case, a single colon subscript may be used to replace all the elements of a matrix with a scalar, e.g., a(:) = -1
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#matlab #programming
Sometimes it is useful to generate a matrix where all the rows or columns are the same. This can be done with the repmat function
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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component.
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3.2.2. Installment Sales
rvices are rendered, independent of the period in which cash payments for those goods or services are received. This principle applies even to installment sales —sales in which proceeds are to be paid in installments over an extended period. <span>For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 International standards note, how




Flashcard 1479977340172

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
For installment sales, IFRS separate the installments into the sale price, which is [...], and an interest component.
Answer
the discounted present value of the installment payments

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For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component.

Original toplevel document

3.2.2. Installment Sales
rvices are rendered, independent of the period in which cash payments for those goods or services are received. This principle applies even to installment sales —sales in which proceeds are to be paid in installments over an extended period. <span>For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 International standards note, how







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
For installment sales under IFRS, Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.
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3.2.2. Installment Sales
rvices are rendered, independent of the period in which cash payments for those goods or services are received. This principle applies even to installment sales —sales in which proceeds are to be paid in installments over an extended period. <span>For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 International standards note, however, that the guidance for revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country. Under l




#matlab #programming
Use the colon operator and the empty array to delete entire rows or columns, for example, a(:,2) = [ ] deletes the second column of a
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#matlab #programming
You can’t delete a single element from a matrix while keeping it a matrix, so a statement like a(1,2) = [ ] results in an error
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#matlab #programming
using the single subscript notation you can delete a sequence of elements from a matrix and reshape the remaining elements into a row vector
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Flashcard 1479985466636

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
For installment sales under IFRS, Revenue attributable to the sale price is recognized [...], and revenue attributable to the interest component is recognized over time.
Answer
at the date of sale

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For installment sales under IFRS, Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.

Original toplevel document

3.2.2. Installment Sales
rvices are rendered, independent of the period in which cash payments for those goods or services are received. This principle applies even to installment sales —sales in which proceeds are to be paid in installments over an extended period. <span>For installment sales, IFRS separate the installments into the sale price, which is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 International standards note, however, that the guidance for revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country. Under l







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
International standards note that the guidance for installment sales revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country.
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3.2.2. Installment Sales
ch is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 <span>International standards note, however, that the guidance for revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country. Under limited circumstances, recognition of revenue or profit may be required to be deferred for some installment sales. An example of such deferral arises for certain sales of real est




Flashcard 1479989660940

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
International standards note that the guidance for installment sales revenue recognition must be considered in light of [...].
Answer
local laws regarding the sale of goods in a particular country

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International standards note that the guidance for installment sales revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country.

Original toplevel document

3.2.2. Installment Sales
ch is the discounted present value of the installment payments, and an interest component. Revenue attributable to the sale price is recognized at the date of sale, and revenue attributable to the interest component is recognized over time.18 <span>International standards note, however, that the guidance for revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country. Under limited circumstances, recognition of revenue or profit may be required to be deferred for some installment sales. An example of such deferral arises for certain sales of real est







#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under limited circumstances, recognition of revenue or profit may be required to be deferred for some installment sales. An example of such deferral arises for certain sales of real estate on an installment basis. Revenue recognition for sales of real estate varies depending on specific aspects of the sale transaction.
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3.2.2. Installment Sales
attributable to the interest component is recognized over time.18 International standards note, however, that the guidance for revenue recognition must be considered in light of local laws regarding the sale of goods in a particular country. <span>Under limited circumstances, recognition of revenue or profit may be required to be deferred for some installment sales. An example of such deferral arises for certain sales of real estate on an installment basis. Revenue recognition for sales of real estate varies depending on specific aspects of the sale transaction.19 Under US GAAP, when the seller has completed the significant activities in the earnings process and is either assured of collecting the selling price or able to estimate




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Under US GAAP, when the seller has completed the significant activities in the earnings process and is either assured of collecting the selling price or able to estimate amounts that will not be collected, a sale of real estate is reported at the time of sale using the normal revenue recognition conditions
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3.2.2. Installment Sales
for some installment sales. An example of such deferral arises for certain sales of real estate on an installment basis. Revenue recognition for sales of real estate varies depending on specific aspects of the sale transaction.19 <span>Under US GAAP, when the seller has completed the significant activities in the earnings process and is either assured of collecting the selling price or able to estimate amounts that will not be collected, a sale of real estate is reported at the time of sale using the normal revenue recognition conditions.20 When those two conditions are not fully met, under US GAAP some of the profit is deferred. Two of the methods may be appropriate in these limited circumstances and relate to the amou




Flashcard 1479993855244

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under US GAAP, when the seller has completed the [...] in the [...] and is either assured of collecting the selling price, a sale of real estate is reported at the time of sale using the normal revenue recognition conditions.
Answer
significant activities

earnings process

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Under US GAAP, when the seller has completed the significant activities in the earnings process and is either assured of collecting the selling price or able to estimate amounts that will not be collected, a sale of real estate is reported at the time of sale using the normal reve

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3.2.2. Installment Sales
for some installment sales. An example of such deferral arises for certain sales of real estate on an installment basis. Revenue recognition for sales of real estate varies depending on specific aspects of the sale transaction.19 <span>Under US GAAP, when the seller has completed the significant activities in the earnings process and is either assured of collecting the selling price or able to estimate amounts that will not be collected, a sale of real estate is reported at the time of sale using the normal revenue recognition conditions.20 When those two conditions are not fully met, under US GAAP some of the profit is deferred. Two of the methods may be appropriate in these limited circumstances and relate to the amou







Flashcard 1479996214540

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under US GAAP when do you use the installment method and the cost recovery method ?
Answer
When the seller has not completed the significant activities in the earnings process

or if

The seller cannot be assured of collecting the selling price nor able to estimate amounts that will not be collected.

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3.2.2. Installment Sales
for some installment sales. An example of such deferral arises for certain sales of real estate on an installment basis. Revenue recognition for sales of real estate varies depending on specific aspects of the sale transaction.19 <span>Under US GAAP, when the seller has completed the significant activities in the earnings process and is either assured of collecting the selling price or able to estimate amounts that will not be collected, a sale of real estate is reported at the time of sale using the normal revenue recognition conditions.20 When those two conditions are not fully met, under US GAAP some of the profit is deferred. Two of the methods may be appropriate in these limited circumstances and relate to the amou







Flashcard 1479998573836

Tags
#cfa-level-1 #installment-sales #reading-25-understanding-income-statement #revenue-recognition
Question
Under the [...] method, the portion of the total profit of the installment sales that is recognized in each period is determined by the percentage of the total sales price for which the seller has received cash.
Answer
installment

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3.2.2. Installment Sales
some of the profit is deferred. Two of the methods may be appropriate in these limited circumstances and relate to the amount of profit to be recognized each year from the transaction: the installment method and the cost recovery method . <span>Under the installment method, the portion of the total profit of the sale that is recognized in each period is determined by the percentage of the total sales price for which the seller has received cash. Under the cost recovery method, the seller does not report any profit until the cash amounts paid by the buyer—including principal and interest on any financing from the seller—are grea







Flashcard 1480000933132

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under the [...] method, the seller does not report any profit until the cash amounts paid by the buyer are greater than all the seller’s costs of the property.
Answer
cost recovery method

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3.2.2. Installment Sales
thod and the cost recovery method . Under the installment method, the portion of the total profit of the sale that is recognized in each period is determined by the percentage of the total sales price for which the seller has received cash. <span>Under the cost recovery method, the seller does not report any profit until the cash amounts paid by the buyer—including principal and interest on any financing from the seller—are greater than all the seller’s costs of the property. Note that the cost recovery method is similar to the revenue recognition method under international standards, described above, when the outcome of a contract cannot be measured reliabl







Flashcard 1480003292428

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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
The [...] is similar to the revenue recognition method under IFRS, when the outcome of a contract cannot be measured reliably.
Answer
cost recovery method

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3.2.2. Installment Sales
ed cash. Under the cost recovery method, the seller does not report any profit until the cash amounts paid by the buyer—including principal and interest on any financing from the seller—are greater than all the seller’s costs of the property. <span>Note that the cost recovery method is similar to the revenue recognition method under international standards, described above, when the outcome of a contract cannot be measured reliably (although the term cost recovery method is not used in the international standard). Example 4 illustrates the differences between the installment method and the cost recovery method. Installment sales and cost recovery treatment of revenue recognition are







#deeplearning #neuralnetworks
T o analyze ho w man y solutions the equation has, we can think of the columns of A as sp ecifying different directions we can tra v el from the origin (the p oin t sp ecified b y the v ector of all zeros), and determine ho w many wa ys there are of reac hing b . In this view, each element of x sp ecifies ho w far we should trav el in eac h of these directions, with x i sp ecifying how far to mo v e in the direction of column :
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Flashcard 1480007486732

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#horstmann-java8-for-really-impatient #java #java8
Question
Use Arrays.stream(array, from, to) to make stream from a part of
Answer
an array

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