HEMO TECH CASE 12-04 Research Paper Example | Topics and Well Written Essays - 500 words

HEMO TECH CASE 12-04 - Research Paper Example In this contract, HEMO had identified a number of deliverable however not all potential deliverables are in the arrangement. The contract involves multiple- deliverable revenue arrangement as stipulated in (ASC) Standard Update No. 2009-13 in October 2009. Considering whether deliverable items meets the criteria is vital since if they do not meet them ,they do not qualify as a separate unit of accounting and could be united with other deliverables in the arrangement. Though this has be adhered to by HEMO following the selling price hierarchy of Vendor Specific Objective Evidence, third party evidence and best estimate is vital for the whole process to work perfectly Standard codification (ASC) 605-25, which involves the arrangement of multiple elements.ASU 2009-13 provides guidelines that require separate arrangements for multiple deliverables by classifying them into individual units and allocating an amount on each as a unit of accounting (Barker, 1990). The deliverable units that HEMO has identified are Installation,50 boxes of equipment supplies, five units of equipment, one year monitor and test services, report services and three-year screen. However in my opinion, there are other potential deliverables that HEMO has not taken into consideration or identified. In this case, HEMO is to deliver services and before doing, so, it’s vital for it to evaluate all deliverables to establish whether they present separate units of accounting. As per the five deliverable mentioned, this can be said to be separate units of accounting, and they should have value to customer on a standalone basis where this means due to the items value. It can be sold as a separate item by any other vender. One of the potential deliverables is the EXTRACT’s purchases that exceed the initially requested 50 boxes of the supplies. The reason is that the 33% percent discount will emanate from the first purchases. In addition it will