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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 805 |
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And the collection is receivable.
iii) Lucent could defer revenue and related costs when it was uncertain as to whether it would be able to collect the receivable. If Lucent determined the collection of the receivables was unlikely, it would defer revenue but recognize costs.
iv) Because this is sales service on long-term contract, Lucent would use the percentage of completion method of accounting, which means Lucent would recognize the sales and service had been completed until 09/30/02 for fiscal 2002...
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Lucent has determined that most equipment is generally installed by Lucent within 90 days, but can be installed by the customer or a third party, as a result, over the two following years, revenue should be recognized when title passes to the customer, which on the delivery of the equipment, provided if all other revenue recognition criteria are met...
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