HCL Group Senior Analyst Interview Questions and Answers

The 5 steps revenue recognition model outlines the process for recognizing revenue from contracts with customers.

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue as the performance obligations are satisfied

Key components of SOPs include purpose, scope, responsibilities, procedures, and revisions.

• Purpose: Clearly defined objective or goal of the SOP.

• Scope: Specific areas or processes that the SOP applies to.

• Responsibilities: Roles and duties of individuals involved in following the SOP.

• Procedures: Step-by-step instructions on how to carry out tasks or processes.

• Revisions: Process for updating and maintaining the SOP to re...read more

Materiality refers to the significance or importance of information in relation to a decision or financial statement.

• Materiality is a concept used in accounting and auditing to determine the relevance of information to users of financial statements.

• It involves assessing whether the information could influence the decisions of users, such as investors or creditors.

• Materiality is subjective and depends on factors like th...read more

Segment reporting is the practice of breaking down a company's financial information into different business segments.

• Segment reporting helps investors and analysts understand the performance of different parts of a company.

• Companies typically report segment information based on factors such as geography, product lines, or customer types.

• Segment reporting is required by accounting standards to provide transparency and ...read more