Deferred Revenue

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Deferred Revenue

Revenue that a company collects for a good or service that has not been delivered or completed. Deferred revenue is often a deposit of a certain percentage of the total sale. It is kept in a separate account for the company because it may be forced to return it to the customer if the company is unable to fulfill its end of the contract. Because of this, deferred revenue is recorded as a liability on a balance sheet until the good is delivered or the service is completed. It is also called deferred income or deferred credit.

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liability

TC Memo 2002-248, the tax-accrual method for deferred revenue from advance season tickets and private suite reservations.

Deferral of advance season ticket revenue by Houghton, Kristina Drzal / The Tax Adviser

Excluding the impacts of deferred revenue for both fiscal years, operating revenue in 2006 increased 31% compared to the prior year.

Epiq Systems, Inc. Announces Fourth Quarter and Full Year 2006 Results by Business Wire

We believe the increase in both reported revenue and deferred revenue provides a comprehensive indicator of our growth.

Keynote Announces Fiscal First Quarter 2007 Results by Business Wire

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