Deferred income - Revision history

Doug: Add link.

2025-03-01T20:24:01Z

Add link.

← Older revision		Revision as of 20:24, 1 March 2025
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	* [[Credit]]		* [[Credit]]
	* [[Debit]]		* [[Debit]]
			* [[Deferred]]
	* [[Deferred payment credit]]		* [[Deferred payment credit]]
	* [[Deferred tax]]		* [[Deferred tax]]

Doug: Expand definition.

2024-08-10T13:01:20Z

Expand definition.

← Older revision		Revision as of 13:01, 10 August 2024
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	Also known as ''unearned revenue''.		Also known as ''unearned revenue'' or ''unearned income''.

Doug: Add link.

2024-07-26T14:47:25Z

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← Older revision		Revision as of 14:47, 26 July 2024
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	* [[Reporting entity]]		* [[Reporting entity]]
	* [[Revenue]]		* [[Revenue]]
			* [[Revenue recognition]]

	[[Category:Accounting,_tax_and_regulation]]		[[Category:Accounting,_tax_and_regulation]]

imported>Doug Williamson: Add alternative name - source - Amazon annual report 2021

2023-02-12T21:47:49Z

Add alternative name - source - Amazon annual report 2021

← Older revision		Revision as of 21:47, 12 February 2023
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	It is a liability that recognises our obligation to provide services in the future, for which we have already been paid.		It is a liability that recognises our obligation to provide services in the future, for which we have already been paid.


			Also known as ''unearned revenue''.

imported>Doug Williamson: Add links.

2023-01-11T11:07:31Z

Add links.

← Older revision		Revision as of 11:07, 11 January 2023
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	* [[Credit]]		* [[Credit]]
	* [[Debit]]		* [[Debit]]
			* [[Deferred payment credit]]
			* [[Deferred tax]]
	* [[Financial reporting]]		* [[Financial reporting]]
	* [[Income statement]]		* [[Income statement]]

imported>Doug Williamson: Expand definition.

2023-01-10T23:19:47Z

Expand definition.

← Older revision		Revision as of 23:19, 10 January 2023
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	(The related accounting entries for the initial receipt being		(The related accounting entries for the initial receipt being

	:DEBIT Cash in the balance sheet and		:DEBIT Cash asset in the balance sheet and

	:CREDIT Deferred income in the balance sheet.)		:CREDIT Deferred income liability in the balance sheet.)

imported>Doug Williamson: Add link.

2022-07-20T05:15:40Z

Add link.

← Older revision		Revision as of 05:15, 20 July 2022
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	* [[Income statement]]		* [[Income statement]]
	* [[Liabilities]]		* [[Liabilities]]
			* [[Licence]]
	* [[Prepayment]]		* [[Prepayment]]
	* [[Reporting entity]]		* [[Reporting entity]]

imported>Doug Williamson: Expand definition.

2021-08-09T23:49:28Z

Expand definition.

← Older revision		Revision as of 23:49, 9 August 2021
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	Deferred income is amounts for services for which payment has been received by the business, but which has not yet been earned.		Deferred income is amounts for services for which payment has been received by the business, but which has not yet been earned.

			It is a liability that recognises our obligation to provide services in the future, for which we have already been paid.

imported>Doug Williamson: Expand definition.

2021-08-09T23:44:23Z

Expand definition.

← Older revision		Revision as of 23:44, 9 August 2021
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	''Financial reporting - balance sheet - liabilities''.		''Financial reporting - balance sheet - liabilities - accruals accounting''.

	~~Income~~ for which payment has been received by the business, but which has not yet been earned.		Deferred income is amounts for services for which payment has been received by the business, but which has not yet been earned.


	:<span style="color:#4B0082">'''''Example: Five-year licence'''''</span>		:<span style="color:#4B0082">'''''Example: Five-year licence'''''</span>

			:Our business is providing services under five-year licences, payable by our customers in advance.

	:Our accounting year runs from 1 January to 31 December.		:Our accounting year runs from 1 January to 31 December.

	:One of our customers has paid us in advance, at the start of January for a five-year licence.		:One of our customers has paid us in advance - at the start of January - for a five-year licence.

	:We recognise the revenue in our income statement spread over the full five years.		:We recognise the revenue in our income statement spread over the full five years.

	:At the end of the first year 4/5 of the total received from the customer is Deferred income.		:At the end of the first year, 4/5 of the total received from the customer is Deferred income.

	:We have a liability / obligation to provide a further four years of service, for which we have already been paid in advance.		:We have a liability / obligation to provide a further four years of service, for which we have already been paid in advance.
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	Deferred income is recorded as a credit balance in the balance sheet.		Deferred income is recorded as a credit balance in the balance sheet.

	(The related accounting entries for the initial receipt being DEBIT Cash and CREDIT Deferred income.)		(The related accounting entries for the initial receipt being

			:DEBIT Cash in the balance sheet and

			:CREDIT Deferred income in the balance sheet.)


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	For reporting presentation purposes it is often aggregated with Accruals, as 'Accruals and deferred income'.		For reporting presentation purposes it is often aggregated with Accruals, as 'Accruals and deferred income'.


			As the deferred income is earned in subsequent reporting periods, the amount remaining in the balance sheet is reduced, and the income is recognised in the Income statement.

			The related accounting entries are:

			:DEBIT Deferred income in the balance sheet, reducing the remaining net credit balance;

			:CREDIT Revenue in the income statement.

imported>Doug Williamson: Layout.

2020-12-30T22:50:00Z

Layout.

← Older revision		Revision as of 22:50, 30 December 2020
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	<span style="color:#4B0082">'''''Example: Five-year licence'''''</span>		:<span style="color:#4B0082">'''''Example: Five-year licence'''''</span>

	Our accounting year runs from 1 January to 31 December.		:Our accounting year runs from 1 January to 31 December.

	One of our customers has paid us in advance, at the start of January for a five-year licence.		:One of our customers has paid us in advance, at the start of January for a five-year licence.

	We recognise the revenue in our income statement spread over the full five years.		:We recognise the revenue in our income statement spread over the full five years.

	At the end of the first year 4/5 of the total received from the customer is Deferred income.		:At the end of the first year 4/5 of the total received from the customer is Deferred income.

	We have a liability / obligation to provide a further four years of service, for which we have already been paid in advance.		:We have a liability / obligation to provide a further four years of service, for which we have already been paid in advance.