Client Financial Management Specialist Interview Questions and Answers

Amount received upfront and criteria for revenue recognition

• The amount received upfront is recognized as a liability until the revenue recognition criteria are met

• Revenue recognition criteria include delivery of goods or services, customer acceptance, and collectibility

• Revenue is recognized when the criteria are met and the liability is released

• The revenue recognition method used depends on the nature of the transaction and the industry standards

• Examples of revenue recognitio...read more

Ind AS 115 is a new revenue recognition standard that outlines a single comprehensive model for recognizing revenue from contracts with customers.

• Ind AS 115 replaces the existing revenue recognition guidance in Ind AS 18 and Ind AS 11.

• It requires entities to recognize revenue when control of goods or services transfers to the customer, rather than when the risks and rewards of ownership transfer.

• The standard also requires entities to disclose more information about revenue, i...read more

Pricing strategy is influenced by various factors such as competition, cost of production, demand, and target market.

• Competition: Prices are often influenced by the prices of competitors.

• Cost of production: The cost of producing a product or service affects the price.

• Demand: The level of demand for a product or service can affect the price.

• Target market: Prices may vary depending on the target market and their willingness to pay.

• Examples: Skimming pricing, penetration pricing...read more

Forecasting is predicting future outcomes based on past data, while budgeting is setting financial goals for a specific period.

• Forecasting uses historical data to predict future outcomes, while budgeting sets financial goals for a specific period.

• Forecasting is more flexible and can be adjusted based on changing circumstances, while budgeting is more rigid and sets specific targets.

• Forecasting is often used for revenue and sales projections, while budgeting is used for expens...read more