Reference no: EM131763919

Prepare a memo to the board summarizing the goals and requirements of the new revenue recognition standard ASU 2014-09. Be sure to address the key criteria that FASB focused on as to when revenue should be recognized. Include in your memo to the board summaries of the various revenue and earnings manipulations that Sunbeam Corporation committed in the late 1990's. Read the document which contains the SEC report against Sunbeam Corporation. Also research other sources you can find regarding Sunbeam's violations. When appropriate, compare these manipulations to the requirements of the new revenue recognition standard, and note which part of the new standard was violated by these actions. Terms such as "channel stuffing", "cookie-jar reserves", "big bath accounting" and "earnings quality" as well as any others you come across should be defined and described in your memo.