The Accounting Policies Of The Companies - 1189 Words

The purpose of this project is to analyses the accounting policies of the following three industries (manufacturing, retail and service), based on their 2015 annual 10-K Consolidated Balance Sheet, and Consolidated Income Statement, GAAP, FASB and SEC. There were a few accounting polies that will be discussed that are outdated and should probably not be used, due to the inaccurate of the fair or market value, and the industries should find an alternative accounting policy to use. All of the six industries reviewed do use some different accounting policies, but for the most part companies with in the same industry are using the same accounting policies. Overview The manufacturing industries that will analyzed are PepsiCo, Inc., and Dr. Pepper Snapple Group, Inc., both popular beverage companies, which form part of a large worldwide manufacturing sector. Revenue Recognition PepsiCo. revenue recognition is based on the customer’s written sales agreement with a right of no returns allowed, upon shipment or delivery. Dr. Pepper is once the product has been delivered, there is an agreement on a fixed price or when the price has been determined, evidence that an agreement does exist, and â€Å"reasonable assurance of collectability†. Both companies do follow GAAP guideline, on when revenue should be recognized, which is when the company has actually met their part of the term agreement, which is after the product has been shipped or delivered. Property, Plant and EquipmentShow MoreRelatedSummary of Research for Accounting Changes and Error Analysis1143 Words   |  5 Pages Summary on Research for Accounting Changes and Error Analysis Companies have always faced issues of how to reflect changes in accounting methods and error corrections in financial statements. 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