In Its 2013 Annual Report to Shareholders, Ank-Morpork Times Inc

question 36

Essay

In its 2013 annual report to shareholders, Ank-Morpork Times Inc. included the following disclosure:
Revenue Recognition
• Advertising revenue is recognized when advertisements are published, are broadcast, or when placed on the Company's websites, net of provisions for estimated rebates, credit and rate adjustments and discounts.
• Circulation revenue includes single copy and home-delivery subscription revenue. Single copy revenue is recognized based on date of publication, net of provisions for related returns. Proceeds from home-delivery subscriptions and related costs, principally agency commissions, are deferred at the time of sale and are recognized in earnings on a pro rata basis over the terms of the subscriptions.
• Other revenue is recognized when the related service or product has been delivered.
Also, the following information on its current liabilities was included in its comparative balance sheets: Required:
Assuming that Ank-Morpork Times Inc. collected $440,000,000 in cash for home-delivery subscriptions during fiscal year 2013, what amount of revenue did it recognize during 2013 from this source? Show the relevant T-account information to support your answer.

---

Definitions:

Systemic Discrimination

A form of discrimination that is embedded in the policies, procedures, or practices of an organization, leading to widespread unfair treatment of certain groups.

Diversity Management

The strategic approach to recognizing, respecting, and valuing differences within the workforce to improve business outcomes.

Multicultural Workforce

Describes a diverse group of employees from various cultural backgrounds working in an organization.

Business Objectives

Specific, measurable goals that companies aim to achieve to ensure growth, profitability, and sustainability.