Potential Deliverables in the Arrangement: Homo-Tech Inc - Case Study Example

Comments (0) Cite this document
The paper “Potential Deliverables in the Arrangement: Homo-Tech Inc.” seeks to explore all the deliverables which are possible with the agreement. Examples of these deliverables are the payment by Extract for the upgrade of materials based on the fact that there are new regulations…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Potential Deliverables in the Arrangement: Homo-Tech Inc
Read TextPreview

Extract of sample "Potential Deliverables in the Arrangement: Homo-Tech Inc"

Potential Deliverables in the Arrangement: Homo-Tech Inc.
Q1. Hemo identified the five units of equipment, 50 boxes of equipment supplies, installation, one-year monitor and test services, and three-year screen and report services as deliverables in the arrangement. Has Hemo identified all the potential deliverables in the arrangement? If not, what are the other potential deliverables? Explain how you determined whether an item is a deliverable.
Though Hemo identified these deliverables, they did not exhaust all the deliverables which are possible with the agreement. There are other deliverables which are possible in the agreement. Examples of these deliverables are the payment by Extract for the upgrade of materials based on the fact that there are new regulations every two or so years and the contract was spanning a whole five years. The identification of the FDA requirements as a deliverable is motivated by the fact that the changes may affect an aspect that needs to be changed in their products and the Hemo would incur tremendous expenses to meet such eventualities.
Thus, to caution against all such unforeseen circumstances, the company should include thee factor as a potential deliverable. Another possible deliverable is the training of the Extract employees on how to use the new instruments for best results. Extract company should be charged for that service. The identification of this as a deliverable is based on the criteria of time, where Hemo will spend time resource to train Extract employees. These are the potential deliverables which Hemo should have considered also.
Q2. In order to allocate the arrangement consideration to all the deliverables identified, Hemo needs to determine the selling price for each deliverable. Should Hemo use vendor-specific objective evidence (VSOE), third-party evidence (TPE), or its best estimate of the selling price (ESP) to determine the selling price of the following deliverables: (1) equipment, (2) discount on future supplies, and (3) screen and report services?
In determining the selling price of the equipment deliverables, Hemo should use its best estimate of the price (ESP) to estimate the price. This is because the company have invested much of its resources to research and development and considered various players in the market including the different competitors that they have. Through this, they can be able to use a best estimate of the price which will allow them to arrive at a price that is convenient for the company and the customers. To determine the selling price of discount on future supplies, the company should best apply the third party evidence. This is because, such evidence is important to the company to be able to foretell and to estimate the actual state of affairs on a later date in the economy [Acc09].
For this reason, Hemo should appropriately integrate evidence from dependable third parties. Lastly, in the case of determining the selling price of screen and report services, they should use the vendor specific objective evidence method. This is a method which is used to recognize revenue used by companies in recognition of revenue on some specific items which is based on company-specific evidence where the product is delivered.[08Ma]. This method is therefore the best since screen and report services are specific to specific hospitals and cannot be generalized. Through these means the company will be able to achieve the best equitable deliverables selling prices, them that will be comfortable both to her clients and to her profit maximization of the 20% margin.
Q3. What accounting literature would Hemo look to under IFRSs to answer the above accounting questions?
There are various literature related to IFRS accounting standards which the company can use in answering the accounting questions named above. First the company should consider the time value of money. That though the company is striving to achieve lower price for their goods, time is of essence and it should be considered in setting deliverables selling prices. The company should also include the amended guidance separation requirements of IFRS into separating the various deliverables into the methods that they can use to determine the selling prices for each of them.[Ric10] Through the use of all these methods and following the literature from IFRS Hemo company can be able to solve the accounting problems easily.
Acc09: , (Accounting Info, 2009),
08Ma: , (Stuart, 2008),
Ric10: , (Cleveland, 2010), Read More
Cite this document
  • APA
  • MLA
(“Potential Deliverables in the Arrangement: Homo-Tech Inc Case Study”, n.d.)
Potential Deliverables in the Arrangement: Homo-Tech Inc Case Study. Retrieved from
(Potential Deliverables in the Arrangement: Homo-Tech Inc Case Study)
Potential Deliverables in the Arrangement: Homo-Tech Inc Case Study.
“Potential Deliverables in the Arrangement: Homo-Tech Inc Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Potential Deliverables in the Arrangement: Homo-Tech Inc

Tech Data

...? Tech Data Tech Data Tech Data Corporation is an international company that engages in the sale and distribution of technology products. The company has made numerous different strides in the field of technology, consequently, helping very many people. Understanding the running of the company is important in an effort to appreciate the moves that it has and still makes in the highly competitive technology market of the 21st century. The best manner through which to get a better view of the company is by carrying out an audit report. This report seeks to review a company by focusing on various aspects involved in the year 2002 is important in that make it rather easier to understand the...
10 Pages(2500 words)Case Study

Tech Article Wal-Mart Inc. Wal-Mart is the world largest retailer and biggest employer. The use of RFID has allowed Wal-Mart to improve its warehouse logistics. For example Wal-Mart is using RFID technology to scan tags on products as pallets are moved through a dock or scanning cases on high shelves in a warehouse (Rfidjournal). Companies can also use the technology to track the movement of merchandise as it is moved by trucking companies. The auto-id system developed for use in RFID tags must be open source so that there won’t be any compatibility issues. A good system will use the internet to connect users to the information in real time. As the cost of RFID continues to decrease its application will become the new standard in...
1 Pages(250 words)Essay

Homo Sexual- Rogerian Argument

...? 22 March Adoption of children by homosexual couples: Introduction: Homosexuality is a wrongful and unnatural way of living. It causes a lot of troubles in the society. It does not only ruin the life style of those who practice it, but also, peace in the life of those who are related to them is at stake. Like all other matters of life, homosexuals should not be allowed to adopt children. Adoption of children is a very complicated matter, which requires consideration of several aspects. Adoption of children by homosexual couples is extremely harmful for their psychological and physiological development. Critic’s view: In the paper written by (Smith), child adoption by homosexual couples has been favored. (Smith) has made... 22 March Adoption...
5 Pages(1250 words)Essay

Modern Tech

...? MEDIA & THE TECHNOLOGY PARADIGM INTERNET VS PRINT The story of advent of Internet as the superior source of information is one which had a slow andcumbersome start in the mid of last century. It is no small distinction that technological advancements in supportive fields and better infrastructure have pushed the growth of internet media into separate dimension to make it an integral part of everyone’s lives irrespective of age, gender, nationality and creed. The power of information in any age is unequivocal as it can change the destiny of nations, form public opinion, propel invention and innovation among other things. There are many voices that hold on to the ubiquitous belief that the ephemeral nature of information... MEDIA & THE...
2 Pages(500 words)Essay

Recombinant DNA tech, RNA tech, Protein Expression, Protein tech

...of flu because they lacked the putative gene responsible for conferring resistance. Such an experiment would serve to confirm the potential of the putative gene in rendering the transformed mice resistance to flu, while the normal mice would remain vulnerable. Question three In the case presented, it would be necessary to determine the bacterial samples obtained from cells transformed with a normal plasmid, and an additional sample transformed with a reconstructed sample. It is worth highlighting that the reconstructed plasmid has a longer circular DNA compared to the normal plasmid. Th4 first step in this experiment would involve the use of polymerase chain reaction to amplify the samples in each of the tubes. The...
5 Pages(1250 words)Assignment

Tech Development

...Developing Thinking Skills: Cognitive Exercises Improving thinking skills is an important directive for teachers, but what exactly is meant by that broad statement? Thinking takes place inside a child’s head and it is only by inference that a teacher can see how a child is processing information. In addition, a variety of factors can influence thinking skills from moment to moment or year to year in the young child; as they grow and mature, their skills naturally improve and their brains produce more neuronal connections, making it easier for them to absorb, process, and use information learned in the past. Along with helping students learn information, teachers can help them sharpen certain kinds of cognitive skills. This essay... Thinking...
11 Pages(2750 words)Essay


...Deliverables Deliverables What are some of the difficulties that might come up in actual application of the various methods ofcapital project evaluation? The methods of capital project evaluation vary from payback to the internal rate of return to the net present value. These methods have their advantages in an organization or business, as well as disadvantages. One difficulty that arises from the use of a method such as NPV is the possibility of compounding a risk premium that is in the business. Such compounding ultimately leads to a low NPV. This makes business accrue losses rather than reduce the losses (Ross, Westerfield, & Jordan, 2011). With the use of the IRR, it is frighteningly easy for a...
2 Pages(500 words)Essay


...HEMO TECH case Insert of the HEMO TECH CASE Deliverable is a term used in accounting or project management to define tangible or non tangible objects that are produced as a result of undertaking a project that needs to be provided to a client. As such, it may be a document, server upgrade, report or building blocks of the project. Deliverables may also consist of multiple deliverables that are utilized in the general scheme of the project. Further, deliverables consist of an aspect or function of the overall project (Barker, 1990). In the contract between EXTRACT CO and HEMO-TECH plc, HEMO is supposed to deliver products...
2 Pages(500 words)Research Paper

Potential Malicious Attacks in ACME Inc

...Potential Malicious Attacks in ACME Inc. Potential malicious attacks that could be carried out against the network and organization. 1. Administration Attacks can occur when: There’s no encryption of passwords in transfer Configurations are not kept and no back-up s in place for network devices Passwords exist for an indefinite period on devices used in the network Weak administrative access controls are used There’s sharing of passwords on devices Negligible flow of data control is utilized (e.g. minimum use of virtual local area networks, virtual private networks, or access control lists) 2. Hardware Attacks on hardware can occur when: Non-critical staff has physical access to...
4 Pages(1000 words)Assignment

Homo heidelbergensis

...Fossil Profile Project- Homo heidelbergensis Homo heidelbergensis also referred to as the Homo rhodesiensis is a species of the genus Homo that was found in Africa, western Asia, and Europe( Coolidge & Wynn 13). The Neanderthals, denisovans, and the Homo sapiens (human beings) are descendants of the Homo heidelbergensis. It has a brain almost the size of modern Homo sapiens. Image of fossil Homo heidelbergensis adopted from .<> Name Instructor Course Date Locations of the discovery Homo heidelbergensis was initially...
11 Pages(2750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Potential Deliverables in the Arrangement: Homo-Tech Inc for FREE!

Contact Us