http://www.itnews.it/news/2009/0130125601808/suprema-revenues-jump-100-in-2008.html
Summary:
In this article, a company has made a large amount of money in revenue that was doubled from their last year’s results. Suprema Inc. (KOSDAQ: 094840), has recently announced that just last Friday, its revenue had made an incredibly significant increase in its 2008 year. They are a leading global provider in the industry of fingerprint recognition technology and systems. The increase is simply astonishing, a complete 100%. Compared to their previous year, they had made a substantially large growth in global sales. Also, they were exceptionally successful in their launching of several new businesses which involved live scanners and electronic passport solutions. At the end of their fiscal period, the 31st of December 2008, they reported KRW 22.4 billion (US $16.22 million) in sales and KRW 10.0 billion (US $7.24 million) in operations. Due to this great success, its profits have even topped that of some government sectors. Suprema has recorded extraordinary results in the US Government’s NIST MINEX tests, simply obliterating all previous companies in November 2008. Their success can be traced for 3 consecutive years with double growth each time and has even launched
Connections:
The connections I was able to make between this article and Chapter 4 in our text is rather simple as it is revenue recognition. With the large increases and growth made by Suprema Inc. in the past 3 years, their revenue must be recognized at the proper time in order for everything to be true of the company’s performance. Many basic mistakes can occur if the particular revenues are not recognized in the times of which they are supposed to. The revenue recognition principle states that revenues are to be recognized when they are first realized or seen but are not actually earned until goods have been transferred or services have occurred. Now, in Suprema Inc.’s situation, their 2008 revenue in sales of 16.22 million in US dollars is to be recorded as revenue at first, but after the money has been earned, it will then move into a subsection called “Sales Revenue.” The same goes for the operations revenue which will also fall into an account called “Income from Operations.” Both of these accounts are shown on the income statements in an annual report. The importance of accomplishing this is so that the information of the company is true to all users of its financial statements. Finally, with the revenue having been designated to its appropriate accounts, the principle of revenue recognition has been met.
Personal Reflection:
In my opinion, I feel that this article can serve as a motivator for several companies who are in competition with Suprema Inc. It will push them to their ultimate heights to succeed in their area of expertise so that they can accomplish something like what this great company has done. As this is inevitable to occur, it will further the advancement in this industry which benefits everyone in the long run because they all have the same goal which is to bring something new or improved. Also, with the bar now set at almost an unthinkable bar, companies have no choice but to give it their all to succeed to their full potential. Along with this, I still cannot believe the fact that a company has gone so far and made an utterly jaw-dropping amount of money compared to last year. It shows how much dedication and hard work is being put into this company. In conclusion, I give my full respect to Suprema Inc. for doing what they have done for our security at every level and hope to see them have a long and prosperous future. One last note I wanted to make was that even though Suprema Inc. has done very well representing its company to the rest of the world, they need to keep in mind that no one stays on top forever.
