Deferred Revenue

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3 comments

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    Gus Neil

    Think the attached support file might be corrupt as get errors when trying to open.

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    Thomas Murray

    We have updated the file and added it here. The attached example should work now.

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    Stephen Craig-Pearson

    Great approach - setting up an example as a downloadable file so we can play.  

    The P&L and BS treatment is perfect. 

    Note in the CF statement: while this solution results in correct statement of Cash Provided(Used) By Operations (which is where it really matters), it overstates both Operating Revenues and movements to Change in Deferred Revenue, making the statement look "wrong" and potentially needing explanation/looking less credible.

    Ive had a crack at different ways and come up with the same issue.  Not the end of the world but in my line of work "explaining is losing" when fronting up to my board.  

    Thanks again

     

     

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