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How to Recognize Deferred Revenue
Understanding Return on Equity
How to Calculate Dividend Yield
How to Calculate Days Payable
How to Prepare a Company Bank Reconciliation
Evaluating Accounting Software
Posting to Ledgers
Calculating Percentage Increases
How to Create an Income Statement
How to Implement an Accounting System
How to Make a Budget
How to Perform an External Audit-Accounting Supplemental-Program Stream
Summary: Deferred revenue is an issue when not all of the risks and rewards of a sale have been transferred to the customer, and this is common in the technology industry. Find out how to recognize deferred revenue with information from a certified public accountant in this free video on accounting.
Miranda Chook is a CPA with expertise in international operations. She has held executive positions with both publicly listed and privately held companies. In addition to her finance...read more
"My name is Miranda Chook, a CPA. Deferred revenue normally arises when not all the risks and rewards of the sale have been transferred to the customer. Typical examples of this arise in the technology industry where for example computer hardware is sold with a professional services element. The concepts of VSOE and the residual method are beyond the scope of this video but when the conditions are met for recognizing income then income is recognized and deferred revenue is reduced and for more information that is more specific to your industry and to your company please take a look at EITF's 0801, 0021 and SOP 972."
eHow Article: How to Recognize Deferred Revenue
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