Case ID: 173193
Solution ID: 476

Stirling Homex A Case Solution

Case Solution

Deals primarily with the basic issue of revenue recognition. Homex was recognizing revenue from its modular units prior to the date on which an actual sale had taken place. In addition, there are some interesting issues dealing with the allocation of profit between divisions, the capitalization of expenses, and the meaning of 'working capital' in a specific setting.

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