The evidence suggests that deferred revenue
changes can serve as a valid leading indicator for a firm's future financial performance.
7m of deferred revenue
amortisation, compared to fourth-quarter 2015 contract drilling revenue of USD267.
Unfortunately, the euphoria of acquiring a company can end abruptly--when the buyer realizes it will never get a chance to recognize a significant portion of the acquired company's pre-acquisition deferred revenue
The company added that of the debt, USD4m of revenue has been recognised by ProMetic in the first half of 2011, which effectively reduced the debt by that amount, leaving USD6m as deferred revenue
on the company's balance sheet.
The discussion below deals specifically with deferred revenue
liabilities in post-business combination accounts in the acquirer's financial statements.
Others also pointed to confusion over the earnings numbers because Microsoft included the effects of deferred revenue
from pre-sales of Windows 7 to PC makers and retailers, and its free upgrade program.
In 2007, the company reported record third-quarter profit increases of 65 percent in part by deferred revenue
from a Windows Vista upgrade program.
Also, Questex will assume the deferred revenue
liabilities associated with the acquired assets and will receive an adjustment for the negative working capital of the acquired properties.
TC Memo 2002-248, the tax-accrual method for deferred revenue
from advance season tickets and private suite reservations.
The deferred revenue
is booked as a liability on the firm's balance sheet.
Non-GAAP income from operations excludes the purchase accounting adjustment to record at fair value acquired deferred revenue
and the impact of the transition to the new software revenue recognition rules, as well as share-based compensation expenses and amortization of acquired intangible assets.
8m amortization of Personal Handy-phone System ("PHS") deferred revenue
(a non-GAAP measure).