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 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

Realizing potentials is mark of a great company

Posted on August 30th, 2019 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

You should also take an extra look at the people who 'may not be ready,' and analyze them on the basis of their ambition, reputation, and passion for your business." An interesting read on what makes for inspring leader

Hire Leaders for What They Can Do, Not What They Have Done

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Oracle EBS 12.2.9 is Available….

Posted on August 21st, 2019 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Oracle E-Business Suite 12.2.9 is available now!

Release 12.2.9 is a suite-wide patch that offers new features and enhancements, and provides regular updates. These improvements are geared towards further increasing efficiency, supporting modern business workflows, and providing a more intuitive user interface.

Release 12.2.x customers can apply 12.2.9 directly to their environments. EBS 12.2.9 is an online patch, so it can be applied while an existing Release 12.2.x system is running.

Release 12.2.9 also follows suit with Oracle’s Continuous Innovation release model for E-Business Suite 12.2 and will continue to receive Premier Oracle Support through 2030.

Read more details

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Oracle Adaptive Intelligent Applications for ERP

Posted on February 16th, 2018 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Recently Oracle announced new AI-based Apps for Finance Leaders to empower CFOs w/ data-driven insights to adapt to change, develop new #markets & increase profitability!

With Oracle Adaptive Intelligent Applications for ERP, finance leaders can benefit from:

  • Better insight: Making use of analytics and synthetic intelligence to finance can enhance efficiency and will increase agility throughout payables, receivables, procurement, and monetary interval shut processes. Clever purposes are additionally in a position to present instructed actions to assist mitigate vendor threat and fraud exercise by detecting exceptions in vendor choice standards.
  • Greater efficiency: Robotic process automation and artificial intelligence capabilities enable touchless transaction processing, minimizing the chance of human error.
  • Smarter business outcomes: Oracle delivers immediate impact by infusing machine learning across the entire suite of business applications; this is done by leveraging data from the Oracle Data Cloud and from partners to derive insights across multiple channels and platforms, including finance, HR, and project management to support strategic business decision-making.
  • Increased influence: The wealthy insights obtainable to finance leaders through synthetic intelligence empower CFOs to anticipate what comes subsequent for the enterprise and to make clever selections, growing the affect of the CFO and finance staff within the group.

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How Blockchain Technology Will Impact Accounting.

Posted on December 21st, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Since this data is unchallengeable and absolute, accountants and auditors can save valuable time, which can also decrease cost. He highlights that, from an audit prospective, using blockchain, artificial intelligence, and cognitive tools can increase audit volume to help get through massive volumes of data. The technology also extends itself in helping accounting firms prevent fraud and collusion both internally and externally.

Blockchain’s impact on accounting is imminent. Here is how the technology will allow accountants, auditors, and financial professionals the ability to trust the data blockchain provides.

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ASC 606 & IFRS 15: Revenue from Contracts with Customers

Posted on July 9th, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

As we all know, on May 28, 2014, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) together issued a converged standard about recognition of revenue from contracts with customers.

Known as ASC 606, Revenue from Contracts with Customers, the standard will improve the financial reporting of revenue and improve comparability of the top line in financial statements globally, the Boards say.

Under the new revenue reporting regulations, which would establish a comCapturemon revenue standard for U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), an entity will have to implement the following five steps for contract creation process .

  1. Identify the contract(s) with a customer.
  2. Identify the performance obligations in the contract.
  3. Determine the transaction price.
  4. Allocate the transaction price to the performance obligations in the contract.
  5. Recognize revenue when (or as) the entity satisfies a performance obligation.

There is a misconception by some that ASC 606 only applies to SaaS companies. While recurring revenue companies are certainly impacted, any company with contractual obligations to their customers are impacted.

The new rules will affect companies that use even moderately complex contracts in their dealings with customers. They include, for example, contracts that are structured using tiered pricing or volume discounts or ones that routinely involve modifications, such as adding or dropping users, or that allow seasonal changes to services

More reading : ASC 606 Revenue Recognition

FASB’s new single, principle-based approach to accounting for revenue from contracts with customers is a turnaround from the existing rule-based system, and auditors and consultants are providing a lot of guidance regarding the new standard in regards to how it changes revenue accounting and related disclosures:

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Revenue Standard : effective dates for reporting using the new accounting standards

Posted on June 11th, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Q :What are the effective dates for reporting using the new accounting standards

A : The expected effective dates are

  • For public entities, the effective date starts with reporting periods beginning on or after December 15,2017.
    Fornonpublic entities, the effective date will be deferred for one year to annual reporting periods beginning after December 15, 2018 and interims beginning after December 15, 2019.

Early adoption is permitted one year prior to these dates.

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Revenue Standard : Approach to transition to the new standard

Posted on May 9th, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Question : Is there an approach to transition to the new accounting standard?

A: The standard states that the methods to transition to the new standards are as follows:

Entities are permitted to apply the new revenue standard either retrospectively subject to some practical expedients (that is, to restate prior periods for a consistent basis of accounting and presentation) or through an alternative transition method [full retrospective ].

The alternative transition method requires an entity to apply the proposed guidance only to contracts not completed at the date of initial application. Then, recognize the cumulative effect of adoption as an adjustment to the opening balance of retained earnings in the year of initial application. Under this approach, the financial statements before and after implementation will not be comparable.

Moreover , Retrospective transition requires applying the new guidance to all prior periods (subject to certain practical expedients).

From a timing standpoint, the critical issue is that an entity presenting three years of comprehensive income will likely need to run parallel systems for two years before the year of adoption

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( ASC 606 ) Step2 : Identify the performance obligations in the contract

Posted on May 2nd, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

The underlying principle of the new standard is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services.

The standard consists of a five-step approach as follows:

clasical steps 606

Fig : 5 steps Framework

Last post we have seen step 1

  • ( ASC 606 ) Step1 : Identify the contract with a customer

Lets take a quick look on Step 2:

IDENTIFY THE PERFORMANCE OBLIGATIONS IN THE CONTRACT

A performance obligation is the basically promise to transfer goods or services to a customer.

In this step, the business needs to identify all the distinct performance obligations in an arrangement.

A good or service is defined as distinct if

  1. the customer can benefit from it on their own, or with resources they already have, and
  2. can be transferred independent of other performance obligations.

Any goods or services that can't be deemed distinct should be bundled together until they can be.
Performance obligations can also cover an obligations the customer might expect because of their history, which can make this step more complex.

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( ASC 606 ) Step1 : Identify the contract with a customer

Posted on May 1st, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Revenue is one of the most important key performance indicators (KPIs) used by investors when assessing a company’s performance and prospects.

Revenue recognition represents one of the highest risks on financial statements, and it is one of the leading causes of restatements. Every publicly traded company has to follow the
guidelines set by the Securities and Exchange Commission (SEC) to communicate their financials effectively to investors. Based on the operations in different countries, businesses sometimes need to comply with more than one set of standards.

Most of the companies located in North America or Europe comply with generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS). Recently, the standards-setters developed new revenue-related standards (IFRS 15 and Accounting Standards Codification [ASC] 606), which ensure clarity and transparency in reporting revenue. These new guidelines require a substantial change in the way currently revenue is being reported compared to the new revenue recognition standards.

The underlying principle of the new standard is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services.

The standard consists of a five-step approach as follows:

clasical steps 606

Fig : 5 steps Framework

Lets take a quick look on Step 1:

1.IDENTIFY THE CONTRACT WITH A CUSTOMER

ASC 606 dictates that a business can account for a contract when all these criteria are met.

  • Both parties should approve the contract (in writing, orally, or via some other agreed-upon practice)
  • Both parties can identify what goods or services are to be transferred to the customer
  • Accounting for the contract will need to be applied when all of the following occur:
    • The parties have approved the contract and intend to perform their respective obligations.
    • Each party's rights regarding the goods or services to be transferred can be identified.
    • The payment terms can be identified.
    • The risk, timing, or amount of the entity's future cash flows are expected to change (contract has commercial substance).
    • It is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services transferred

Regarding the collectability criteria, the entity will assess at the inception of the contract whether it is probable it will collect the transaction price.

Credit losses arising from a contract that was probable of collection at inception will be recognized as an expense in the income statement.

For Contract Modifications - Accounted for as a separate contract if the modification adds one or more distinct performance obligations and the price increases accordingly. Otherwise, a modification is accounted for as an adjustment to the original contract, either prospectively or through a cumulative catch-up adjustment depending on whether the remaining goods or services in the contract are distinct

to be continued :

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Main Provisions under Revenue Recognition

Posted on March 9th, 2017 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Revenue is one of the most important key performance indicators (KPIs) used by investors when assessing a company’s performance and prospects.

Revenue recognition represents one of the highest risks on financial statements, and it is one of the leading causes of restatements.

The core principle as stated in the IFRS is to:

“Recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to exchange for those goods or services.”

The five-step framework is the core structure of IFRS 15; it consist of the five different steps for revenue recognition
clasical steps 606

The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts).

The new standard states that you cannot recognize revenue for billed revenue amounts associated with the billing amount until the performance obligation to the customer is satisfied.

  • For each performance obligation, an entity must apply consistent method of measuring the progress
  • Performance obligation is satisfied at a point in time or over time. This is the trigger to recognize the revenue.
  • Recognize Costs to obtain or fulfill the contract
  • Under disclosure requirements, qualitative and quantitative information is required about contracts, changes, transaction price, costs, etc.

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