임플란트 산업의 수익인식에 대한 사례연구

Dental implant manufacturing companies have adopted different accounting practices for the revenue recognition which has substantially same economic substance. The companies make long-term supply contracts with customer hospitals and are paid whole contract amounts in advance by the banks. The customer hospitals pay their bills in installment later to the banks. For revenue recognition, Osstem implant co.(Osstem) records advances from customers when it receives the contract amounts from the banks and recognizes sales revenue when it delivers its implant products to the customers. However, other implant companies, Dentium and Dio, record whole contract amounts as sales revenue at once and do not adjust their amounts for the undelivered products. This accounting method will overstate sales and net income for Dentium and Dio. Osstem asked the national supervisory institutions to do an official audit review for Dentium and Dio because they might manipulate sales and net income. The implant companies have competed to expand market shares and have not had good relationship each other. Osstem, Dentium and Dio became to have special audit reviews by the supervisory institutions. The institutions reported that Dentium and Dio did not violate accounting rules but followed industrial accounting convention. The institutions allowed different accounting methods for the transaction having same substance. Meanwhile, the supervisory institutions pointed out that all three implant companies did not keep proper accounting for the inventory returns and that they overstated profitability and financial condition. The institutions took disciplinary action for all the three companies.